Analysis showing whether mesa verde should sell unpainted

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Reference no: EM13558162

Mesa Verde manufactures unpainted furniture for the do-it-yourself (DIY) market. It currently sells a table for $75. Production costs are $40 variable and $10 fixed. Mesa Verde is considering staining and sealing the table to sell it for $100. Variable costs to finish each table are expected to be $17, and fixed costs are expected to be $3.

Prepare an analysis showing whether Mesa Verde should sell unpainted or finished tables.

Reference no: EM13558162

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