Question
Sandhill Verde manufactures unpainted furniture for the do-it-yourself (DIY) market. It currently sells a table for $74. Production costs per unit are $39 variable and
Sandhill Verde manufactures unpainted furniture for the do-it-yourself (DIY) market. It currently sells a table for $74. Production costs per unit are $39 variable and $11 fixed. Sandhill Verde is considering staining and sealing the table to sell it for $105. Unit variable costs to finish each table are expected to be an additional $19 per table, and fixed costs are expected to be an additional $1 per table. Prepare an analysis showing whether Sandhill Verde should sell stained 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 | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | ||||
Cost per unit | |||||||
Variable | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | ||||
Fixed | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||
Total | $enter a subtotal of the two previous amounts | $enter a subtotal of the two previous amounts | $enter a subtotal of the two previous amounts | ||||
Net income per unit | $enter the net income per unit in dollars | $enter the net income per unit in dollars | $enter the net income per unit in dollars |
The tables should be (processed further or sold)? |
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