Prepare an incremental analysis

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Reference no: EM131914419

Problem

Mesa Verde manufactures unpainted furniture for the do-it-yourself (DIY) market. It currently sells a table for $68. Production costs are $40 variable and $13 fixed. Mesa Verde is considering staining and sealing the table to sell it for $105. Variable costs to finish each table are expected to be $13, and fixed costs are expected to be $1.

Prepare an incremental analysis.

Determine whether Mesa Verde should sell tables or process further tables.

Reference no: EM131914419

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