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Wildhorse manufactures unpainted furniture for the do-it-yourself market. It currently sells a table for $75 . Production costs are $38 variable and $13 fixed. Wildhorse
Wildhorse manufactures unpainted furniture for the do-it-yourself market. It currently sells a table for $75 . Production costs are $38 variable and $13 fixed. Wildhorse is considering staining and sealing the table to sell it for $103 . Variable costs to finish each table are expected to be $14 , and fixed costs are expected to be $1 . Prepare an analysis showing whether Wildhorse should sell unpainted or finished tables. (If an amount reduces the net income then enter with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000).) Wildhorse process the tables further. Pharoah Co. sells product P ? 14 at a price of $52 a unit. The per-unit cost data are direct materials $16 , direct labour $11 , and overhead $16 (75\% variable). Pharoah has no excess capacity to accept a special order for 35,200 units, at a discount of 25% from the regular price. Selling costs associated with this order would be $4 per unit. Indicate the net income (loss) that Pharoah would realize by accepting the special order. (Enter loss with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000).) Incremental income (loss) $ Pharoah Co. the special order
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