Do It! Review 20-4 Mesa Verde manufactures unpainted furniture for the do-it-you
ID: 2556956 • Letter: D
Question
Do It! Review 20-4 Mesa Verde manufactures unpainted furniture for the do-it-yourself (DIY) market. It currently sells a table for $74. Production costs are $45 variable and $10 fixed. Mesa Verde is considering staining and sealing the table to sell it for $103. Variable costs to finish each table are expected to be $21, and fixed costs are expected to be $3. Prepare an analysis showing whether Mesa Verde should process the tables further. (Enter negative amounts using either a negative sigrn preceding the number e.g. -45 or parentheses e.g. (45).) Sell Unpainted Process FurtherIncrease (Decrease) Net Income Sales per unit Cost per unit Variable Fixed Total Net income per unit ? The tables should be Click if you would like to Show Work for this question: Open Show Work LINK TO TEXTExplanation / Answer
sell unpainted
process further
net income increase/decrease
sales per unit
74
103
29
cost per unit
variable cost
45
66
21
fixed
10
13
3
total
55
79
24
net income per unit
19
24
5
The table should be processed Further
sell unpainted
process further
net income increase/decrease
sales per unit
74
103
29
cost per unit
variable cost
45
66
21
fixed
10
13
3
total
55
79
24
net income per unit
19
24
5
The table should be processed Further
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