An unfinished desk is produced for $37.60 and sold for $65.80. A finished desk can be sold for $74.50. The additional processing cost to complete the finished desk is $6.45. Provide a differential analysis for further processing. Round your answers to two decimal places, if necessary.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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An unfinished desk is produced for $37.60 and sold for $65.80. A finished desk can be sold for $74.50. The additional processing
cost to complete the finished desk is $6.45.
Provide a differential analysis for further processing. Round your answers to two decimal places, if necessary.
Differential Analysis
Sell Unfinished Desk (Alternative 1) or
Process Further into Finished Desk (Alternative 2)
Process Further
Revenues, per unit
Costs, per unit
Profit (loss)
Sell Unfinished
into
Desk
Finished Desk
(Alternative 1) (Alternative 2)
$
$
Differential
Effects
(Alternative 2)
Transcribed Image Text:An unfinished desk is produced for $37.60 and sold for $65.80. A finished desk can be sold for $74.50. The additional processing cost to complete the finished desk is $6.45. Provide a differential analysis for further processing. Round your answers to two decimal places, if necessary. Differential Analysis Sell Unfinished Desk (Alternative 1) or Process Further into Finished Desk (Alternative 2) Process Further Revenues, per unit Costs, per unit Profit (loss) Sell Unfinished into Desk Finished Desk (Alternative 1) (Alternative 2) $ $ Differential Effects (Alternative 2)
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