Wildhorse Verde manufactures unpainted furniture for the do-it-yourself (DIY) market. It currently sells a table for $69. Production costs per unit are $45 variable and $15 fixed. Wildhorse Verde is considering staining and sealing the table to sell it for $100. Variable costs per unit to finish each table are expected to be an additional $17 per unit, and fixed costs are expected to be an additional $4 per unit. Prepare an analysis showing whether Wildhorse Verde should sell unpainted or finished tables. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses e.g. (45)) Sales price per unit $ Cost per unit Variable Fixed Total $ Net income per unit $ $ The tables should be Sell $ S $ Process Further $ $ $ $ Net Income Increase (Decrease)
Wildhorse Verde manufactures unpainted furniture for the do-it-yourself (DIY) market. It currently sells a table for $69. Production costs per unit are $45 variable and $15 fixed. Wildhorse Verde is considering staining and sealing the table to sell it for $100. Variable costs per unit to finish each table are expected to be an additional $17 per unit, and fixed costs are expected to be an additional $4 per unit. Prepare an analysis showing whether Wildhorse Verde should sell unpainted or finished tables. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses e.g. (45)) Sales price per unit $ Cost per unit Variable Fixed Total $ Net income per unit $ $ The tables should be Sell $ S $ Process Further $ $ $ $ Net Income Increase (Decrease)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Wildhorse Verde manufactures unpainted furniture for the do-it-yourself (DIY) market. It currently sells a table for $69. Production
costs per unit are $45 variable and $15 fixed. Wildhorse Verde is considering staining and sealing the table to sell it for $100.
Variable costs per unit to finish each table are expected to be an additional $17 per unit, and fixed costs are expected to be an
additional $4 per unit.
Prepare an analysis showing whether Wildhorse Verde should sell unpainted or finished tables. (Enter negative amounts using either a
negative sign preceding the number e.g.-45 or parentheses e.g. (45))
Sales price per unit $
Cost per unit
Variable
Fixed
Total
$
The tables should be
$
Net income per unit $
Sell
$
$
S
$
Process
Further
$
$
$
$
Net Income
Increase (Decrease)
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