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Question Content Area Oficina Bonita Company manufactures office furniture. An unfinished desk is produced for $35.40 and sold for $65.05. A finished desk can be
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Oficina Bonita Company manufactures office furniture. An unfinished desk is produced for $35.40 and sold for $65.05. A finished desk can be sold for $76.50. The additional processing cost to complete the finished desk is $6.15.
Prepare a differential analysis. Round your answers to two decimal places.
Line Item Description | 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
process further and sell finished deskssell unfinished desks
.
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