Question
please by STEPS: Mesa Verde manufactures unpainted furniture for the do-it-yourself (DIY) market. It currently sells a table for $74. Production costs per unit are
please by STEPS:
Mesa Verde manufactures unpainted furniture for the do-it-yourself (DIY) market. It currently sells a table for $74. Production costs per unit are $44 variable and $15 fixed. Mesa Verde is considering staining and sealing the table to sell it for $110. Variable costs per unit to finish each table are expected to be an additional $18 per unit, and fixed costs are expected to be an additional $3 per unit. Prepare an analysis showing whether Mesa Verde should sell unpainted or finished tables. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Sell | Process Further | Net Income Increase (Decrease) | |||||
Sales price per unit | $ | $ | $ | ||||
Cost per unit | |||||||
Variable | $ | $ | $ | ||||
Fixed | |||||||
Total | $ | $ | $ | ||||
Net income per unit | $ | $ | $ |
The tables should be soldprocessed further . |
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