Question 3

Mesa Verde manufactures unpainted furniture for the do-it-yourself (DIY) market. It currently sells a table for $65. Production costs are $35 variable and $10 fixed. Mesa Verde is considering staining and sealing the table to sell it for $100. Variable costs to finish each table are expected to be $15, and fixed costs are expected to be $1. Prepare an analysis showing whether Mesa Verde should process the tables further. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

		Sell Unpainted		Process Further		Net Income Increase (Decrease)
Sales per unit		$		$		$
Cost per unit
Variable		$		$		$
Fixed
Total		$		$		$
Net income per unit		$		$		$

The tables should be

sold/processed further

.