wood masters inc makes tables the cost to manufacture an unfinished table is 35 637214

Wood masters Inc. makes tables. The cost to manufacture an unfinished table is $35. The selling price per unfinished unit is $50. Management concludes that some of the unused capacity may be used to finish the tables and sell them at $60 per unit. For a finished table, direct materials will increase $2 and direct labor costs will increase $4. Variable manufacturing overhead costs will increase by $2.40 (60% of direct labor). No increase is anticipated in fixed manufacturing overhead.