Review 7-3

Mesa Verde manufactures unpainted furniture for the do-it-yourself (DIY) market. It currently sells a table for $72. Production costs are $40 variable and $15 fixed. Mesa Verde is considering staining and sealing the table to sell it for $102. Variable costs to finish each table are expected to be $14, and fixed costs are expected to be $2.

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 per unit $ $ $ Cost per unit Variable $ $ $ Fixed Total $ $ $ Net income per unit $ $ $

The tables should be .