Oficina Bonita Company manufactures office furniture. An unfinished desk is produced for $36.85 and sold for $65.25. A finished desk can be sold for $75.00. The additional processing cost to complete the finished desk is $6.15. Prepare a differential analysis. Round your answers to two decimal places. Differential Analysis Sell Unfinished (Alternative 1) or Process Further into Finished (Alternative 2) Desks Revenues per desk Costs per desk Profit (loss) per desk. Sell Unfinished Process Further into Differential Effects (Alternative 2) Desks Finished Desks (Alternative 1) (Alternative 2) Should the company sell unfinished desks or process further and sell finished desks? Oficina Bonita Company should sell unfinished desks
Oficina Bonita Company manufactures office furniture. An unfinished desk is produced for $36.85 and sold for $65.25. A finished desk can be sold for $75.00. The additional processing cost to complete the finished desk is $6.15. Prepare a differential analysis. Round your answers to two decimal places. Differential Analysis Sell Unfinished (Alternative 1) or Process Further into Finished (Alternative 2) Desks Revenues per desk Costs per desk Profit (loss) per desk. Sell Unfinished Process Further into Differential Effects (Alternative 2) Desks Finished Desks (Alternative 1) (Alternative 2) Should the company sell unfinished desks or process further and sell finished desks? Oficina Bonita Company should sell unfinished desks
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Process further and sell finished desk or sell unfinished desk?
Transcribed Image Text:Oficina Bonita Company manufactures office furniture. An unfinished desk is produced for $36.85 and sold for $65.25. A finished desk can be sold for $75.00. The additional processing cost to
complete the finished desk is $6.15.
Prepare a differential analysis. Round your answers to two decimal places.
Differential Analysis
Sell Unfinished (Alternative 1) or Process Further into Finished
(Alternative 2) Desks
Revenues per desk
Costs per desk
Profit (loss) per desk
Sell Unfinished Process Further into Differential
Desks
Finished Desks
Effects
(Alternative 1) (Alternative 2)
(Alternative 2)
Should the company sell unfinished desks or process further and sell finished desks?
Oficina Bonita Company should sell unfinished desks
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