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Question 3 La Mesa manufactures unpainted furniture for the do-it-yourself market. It currently sells a table for $69. Production costs are $36 variable and $14
Question 3 La Mesa manufactures unpainted furniture for the do-it-yourself market. It currently sells a table for $69. Production costs are $36 variable and $14 fixed. La Mesa is considering staining and sealing the table to sell it for $104. Variable costs to finish each table are expected to be $15, and fixed costs are expected to be $4. Prepare an analysis showing whether La Mesa should sell unpainted or finished tables. (If an amount reduces the net income then enter with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000).) Net Income Increase (Decrease) Incremental revenue Incremental cost Increase (decrease) in contribution margin La Mesa process the tables further. LINK TO TEXT
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