Question

Oficina Bonita Company manufactures office furniture. An unfinished desk is produced for $37.55 and sold for $65.60. A finished desk can be sold for $74.50. The additional processing cost to complete the finished desk is $6.15. 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 Desks (Alternative 1) Process Further into Finished Desks (Alternative 2) Differential 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 .

Answer #1

**Solution:**

Differential Analysis | |||

Sell Unfinished (Alternative 1) or Process Further into Finished (Alternative 2) | |||

Particulars | Sell Unfinished Desks (Alternative 1) | Process Further into Finished Desks (Alternative 2) | Differential Effects (Alternative 2) |

Revenue per desk | $65.60 | $74.50 | $8.90 |

Costs per desk | $37.55 | $43.70 | $6.15 |

Profit (Loss) per desk | $28.05 | $30.80 | $2.75 |

Should the company sell unfinished desks or process further and sell finished desks? | Process further and sell finished desks. |

Oficina Bonita Company
manufactures office furniture. An unfinished desk is produced for
$36.15 and sold for $65.90. A finished desk can be sold for $74.00.
The additional processing cost to complete the finished desk is
$6.00.
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
Desks
(Alternative 1)
Process Further into
Finished Desks
(Alternative 2)
Differential
Effects
(Alternative 2)
Revenues per desk...

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