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You are a furniture manufacturer, specializing in bookcases. You normally produce unpainted, unfinished bookcases and sell them for $200 a piece. To do so it

You are a furniture manufacturer, specializing in bookcases. You normally produce unpainted, unfinished bookcases and sell them for $200 a piece. To do so it costs $45 in materials, $60 in labour, and $35 in manufacturing overhead for one unit. As competition in this space has increased you have thought about refining your product by painting and waxing them. To refine it costs an additional $20/unit in materials, $35 in labour, and $15 in overhead. You believe based on market research that the further processed bookcase could be sold for $265. What should you do?

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