La Mesa manufactures unpainted furniture for the do-it-yourself (DIY) market. It

Question

La Mesa manufactures unpainted furniture for the do-it-yourself (DIY) market. It currently sells a table for $70. Production costs are $45 variable and $12 fixed. La Mesa is considering staining and sealing the table to sell it for $104. Variable costs to finish each table are expected to be $17, and fixed costs are expected to be $2.

Prepare an analysis showing whether La Mesa should sell unpainted or finished tables. (If answer is zero, please enter 0. Do not leave any fields blank. If amount decreases the income, use either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Enter all amounts in columns "Process Further" and "Sell" as positive amounts and subtract where necessary.)

Sell

Process Further

Increase (Decrease)

Net Income

Sell

Process Further

Increase (Decrease)

Sales per unit $ $ $ Cost per unit Variable Fixed Total Net income per unit $ $ $

Explanation / Answer

as net income increase by 15$ process further and sell

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