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Sheridan Verde manufactures unpainted furniture for the do-it-yourself (DIY) market. It currently sells a table for $75. Production costs per unit are $35 variable and
Sheridan Verde manufactures unpainted furniture for the do-it-yourself (DIY) market. It currently sells a table for $75. Production costs per unit are $35 variable and $11 fixed. Sheridan Verde is considering staining and sealing the table to sell it for $107. Unit variable costs to finish each table are expected to be an additional $22 per table, and fixed costs are expected to be an additional $2 per table. Prepare an analysis showing whether Sheridan 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 | Det Income Increase/Decrease | |
Sales Per Unit | |||
Cos per unit | |||
Variable | |||
Fixed | |||
Total | |||
Net Income per unit | |||
The tables should be (Sold/Processes Further) ? | _________________ |
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