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Sell Unpainted | Process further | Net income Increase/(Decrease) | |
Sales per unit | 70 | 102 | 32 |
Cost per unit | |||
Variable | 40 | 58 | 18 |
Fixed | 10 | 11 | 1 |
Total | 50 | 69 | 19 |
Net income per unit | 20 | 33 | 13 |
Table should be | Processed Further |
Mesa Verde manufactures unpainted furniture for the do-it-yourself (DIY) market. It currently sells a table for...
Do It Review 20-4 Mesa Verde manufactures unpainted furniture for the do-it-yourself (DIY) market. It currently sells a table for $75. Production costs are $35 variable and 513 fixed Mesa Verde is considering staining and sealing the table to sell it for $106. Variable costs to finish each table are expected to be $19, and fixed costs are expected to be 54 Prepare an analysis showing whether Mesa Verde should process the tables further. (Enter negative amounts using either a...
Your answer is partially correct. Try again. Mesa Verde manufactures unpainted furniture for the do-it-yourself (DIY) market. It currently sells a table for $73. Production costs per unit are $42 variable and $12 fixed. Mesa Verde is considering staining and sealing the table to sell it for $108. Variable costs per unit to finish each table are expected to be an additional $21 per unit, and fixed costs are expected to be an additional $3 per unit. Prepare an analysis...
Pine Street Inc. makes unfinished bookcases that it sells for $62. Production costs are $36 variable and $10 fixed. Because it has unused capacity, Pine Street is considering finishing the bookcases and selling them for $70. Variable finishing costs are expected to be $6 per unit with no increase in fixed costs. Prepare an analysis on a per unit basis showing whether Pine Street should sell unfinished or finished bookcases. (Round answers to 2 decimal places, e.g. 15.25. Enter negative...
Mesa Designs produces a variety of hardware products, primarily for the do-it-yourself (DIY) market. As part of your job interview as a summer intern at Mesa, the cost accountant provides you with the following (fictitious) data for the year (in $000). Inventory information: 1/1/00 12/31/00 Direct materials $ 53 $ 60 Work-in-process 81 73 Finished goods 992 1,018 Other information: For the year ’00 Administrative costs $ 2,600 Depreciation (Factory) 3,030 Depreciation (Machines) 4,670 Direct labor 7,000 Direct materials purchased...
Mesa Designs produces a variety of hardware products, primarily for the do-it-yourself (DIY) market. As part of your job interview as a summer intern at Mesa, the cost accountant provides you with the following (fictitious) data for the year (in $000). Inventory information: 1/1/00 12/31/00 Direct materials $ 49 $ 56 Work-in-process 77 69 Finished goods 988 1,014 Other information: For the year ’00 Administrative costs $ 2,200 Depreciation (Factory) 2,830 Depreciation (Machines) 4,630 Direct labor 6,600 Direct...
Mesa Designs produces a variety of hardware products, primarily for the do-it-yourself (DIY) market. As part of your job interview as a summer intern at Mesa, the cost accountant provides you with the following (fictitious) data for the year (in $000): Inventory information: 1/1/00 12/31/00 Direct materials $ 52 $ 59 Work-in-process 80 72 Finished goods 991 1,017 Other information: For the year ’00 Administrative costs $ 2,500 Depreciation (Factory) 2,980 Depreciation (Machines) 4,660 Direct labor 6,900 Direct...
Pine Street Inc. makes unfinished bookcases that it sells for $59. Production costs are $38 variable and $10 fixed. Because it has unused capacity, Pine Street is considering finishing the bookcases and selling them for $71. Variable finishing costs are expected to be an additional $7 per unit with no increase in fixed costs. Prepare an analysis on a per unit basis showing whether Pine Street should sell unfinished or finished bookcases. (Enter negative amounts using either a negative sign...
Brief Exercise 20-5 Pine Street Inc. makes unfinished bookcases that it sells for $58.10. Production costs are $37.49 variable and $10.50 fixed. Because it has unused capacity, Pine Street is considering finishing the bookcases and selling them for $74.91 Variable finishing costs are expected to be $5.79 per unit with no increase in fixed costs. Prepare an analysis on a per unit basis showing whether Pine Street should sell unfinished or finished bookcases. (Round answers to 2 decimal places, e.g....
Green Inc. makes unfinished bookcases that it sells for $57. Production costs are $37 variable and $9 fixed. Because it has unused capacity, Green is considering finishing the bookcases and selling them for $74. Variable finishing costs are expected to be $7 per unit with no increase in fixed costs. Prepare an analysis on a per-unit basis that shows whether Green should sell unfinished or finished bookcases. (If an amount reduces the net income then enter with a negative sign...
Pine Street Inc. makes unfinished bookcases that it sells for $59. Production costs are $38 variable and $10fixed. Because it has unused capacity, Pine Street is considering finishing the bookcases and selling them for $73. Variable finishing costs are expected to be $6 per unit with no increase in fixed costs. Prepare an analysis on a per unit basis showing whether Pine Street should sell unfinished or finished bookcases. (Enter negative amounts using either a negative sign preceding the number...