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. Sugarhill Products makes a wood product in three sizes: small, medium, and large. Currently, the company does not stain any of the products, but

. Sugarhill Products makes a wood product in three sizes: small, medium, and large. Currently, the company does not stain any of the products, but market research has indicated that they can be sold with or without a finishing stain. The following information is available (3 points):

Small

Medium

Large

Initial sales price

$1,500

$2,300

$4,000

Initial cost

500

800

1,300

Sales price after staining

1,650

2,400

4,400

Cost of staining

100

190

300

Number sold per year

300

300

150

Required:

A.

Which products should be stained? Support your answer with calculations.

B.

If all the products are stained, what is the overall effect on net income? Support your answer with calculations.

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