Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN: 9781337788281
Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher: Cengage Learning
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Oficina Bonita Company manufactures office furniture. An unfinished desk is produced for $36.30 and sold for $65.20. A finished desk can be sold for $74.00. The additional
processing cost to complete the finished desk is $6.60.
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
Sell Unfinished Process Further into
Differential
Desks
(Alternative 1)
Finished Desks
(Alternative 2)
Effects
(Alternative 2)
Revenues per desk
$
Costs per desk
Profit (loss) per desk
$
Should the company sell unfinished desks or process further and sell finished desks?
Oficina Bonita Company should
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Transcribed Image Text:< Oficina Bonita Company manufactures office furniture. An unfinished desk is produced for $36.30 and sold for $65.20. A finished desk can be sold for $74.00. The additional processing cost to complete the finished desk is $6.60. 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 Sell Unfinished Process Further into Differential Desks (Alternative 1) Finished Desks (Alternative 2) Effects (Alternative 2) Revenues per desk $ Costs per desk Profit (loss) per desk $ Should the company sell unfinished desks or process further and sell finished desks? Oficina Bonita Company should All work saved. Previous Next > Submit Test for Grading
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