Question

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 showing whether Mesa Verde should sell unpainted 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 Net Income Increase (Decrease) Sales price per unit 108 Cost per unit Variable Fixed Total Net income per unit The tables should be processed further

Answer 1

	Sell	Process further	Net income increase (Decrease)
Selling price per unit	73	108	35
Cost per unit
Variable	42	63	-21
Fixed	12	15	-3
Total	54	78	-24
Net income per unit	19	30	11
The table should be	processed further

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