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Oficina Bonita Company manufactures office furniture. An unfinished desk is produced for $34.10 and sold for $64.30. A finished desk can be sold for $75.50.
Oficina Bonita Company manufactures office furniture. An unfinished desk is produced for $34.10 and sold for $64.30. A finished desk can be sold for $75.50. The additional processing cost to complete the finished desk is $6.00.
Prepare a differential analysis. Round your answers to two decimal places.
Differential Analysis Sell Unfinished (Alternative 1) or Process Further into Finished (Alternative 2) Desks | |||
Sell Unfinished Desks (Alternative 1) | Process Further into Finished Desks (Alternative 2) | Differential Effects (Alternative 2) | |
Revenues per desk | $ | $ | $ |
Costs per desk | |||
Profit (loss) per desk | $ | $ | $ |
Should the company sell unfinished desks or process further and sell finished desks? Oficina Bonita Company should .
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