Oficina Bonita Company manufactures office furniture. An unfinished desk is produced for $34.75 and sold for $65.75. A finished desk can be sold for $75.50. The additional processing cost to complete the finished desk is $6.45. Prepare a differential analysis. Round your answers to two decimal places. Line Item Description Sell Unfinished Desks (Alternative 1) Process Further into Finished Desks (Alternative 2) Differential Effects (Alternative 2) Revenues per desk $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 Costs per desk fill in the blank 4 fill in the blank 5 fill in the blank 6 Profit (loss) per desk $fill in the blank 7 $fill in the blank 8 $fill in the blank 9 Should the company sell unfinished desks or process further and sell finished desks?
Oficina Bonita Company manufactures office furniture. An unfinished desk is produced for $34.75 and sold for $65.75. A finished desk can be sold for $75.50. The additional processing cost to complete the finished desk is $6.45. Prepare a differential analysis. Round your answers to two decimal places. Line Item Description Sell Unfinished Desks (Alternative 1) Process Further into Finished Desks (Alternative 2) Differential Effects (Alternative 2) Revenues per desk $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 Costs per desk fill in the blank 4 fill in the blank 5 fill in the blank 6 Profit (loss) per desk $fill in the blank 7 $fill in the blank 8 $fill in the blank 9 Should the company sell unfinished desks or process further and sell finished desks?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Oficina Bonita Company manufactures office furniture. An unfinished desk is produced for $34.75 and sold for $65.75. A finished desk can be sold for $75.50. The additional
Prepare a differential analysis. Round your answers to two decimal places.
| Line Item Description | Sell Unfinished Desks (Alternative 1) |
Process Further into Finished Desks (Alternative 2) |
Differential Effects (Alternative 2) |
|---|---|---|---|
| Revenues per desk | $fill in the blank 1 | $fill in the blank 2 | $fill in the blank 3 |
| Costs per desk | fill in the blank 4 | fill in the blank 5 | fill in the blank 6 |
| $fill in the blank 7 | $fill in the blank 8 | $fill in the blank 9 |
Should the company sell unfinished desks or process further and sell finished desks?
Oficina Bonita Company should
.
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