Question

DePaulis Furniture Manufacturers makes unfinished furniture for sale to customers from its own stores. Recently, the company has been considering taking production one additional step and finishing some of the furniture to sell as finished furniture. To analyze the problem, DePaulis is going to look at only one product, a very popular dining room chair. The chair can be produced now for $65 and sells for $85 unfinished. If DePaulis were to finish the chair, the cost would increase to $90, but the company could sell the finished chairs for $125.

Required
Should DePaulis finish the chairs or continue to sell them unfinished? Show computations to support your decision.



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  • CreatedMarch 11, 2015
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