Oficina Bonita Company manufactures office furniture. An unfinished desk is produced for $37.15 and sold...
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Oficina Bonita Company manufactures office furniture. An unfinished desk is produced for $37.15 and sold for $65.45. 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.
| Line Item Description | Sell Unfinished Desks (Alternative 1) | Process Further into Finished Desks (Alternative 2) | Differential Effects (Alternative 2) |
|---|---|---|---|
| Revenues per desk | $fill in the blank 1 | $fill in the blank 2 | $fill in the blank 3 |
| Costs per desk | fill in the blank 4 | fill in the blank 5 | fill in the blank 6 |
| Profit (loss) per desk | $fill in the blank 7 | $fill in the blank 8 | $fill in the blank 9 |
Should the company sell unfinished desks or process further and sell finished desks?
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