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Sugarhill Products Makes a Wood Product in Three Sizes: Small,medium,and

Question 71

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Sugarhill Products makes a wood product in three sizes: small,medium,and large.Currently,the company does not stain any of the products,but market research has indicated that they can be sold with or without a finishing stain.The following information is available:
 Small  Medium  Large Initial sales price $1500$2300$4000 Initial cost 5008001300 Sales price after staining 165024004400 Cost of staining 100190300 Number sold per vear 300300150\begin{array}{lrrr}&\underline{\text { Small }} &\underline{ \text { Medium }} &\underline{ \text { Large} }\\\text { Initial sales price } & \$ 1500 & \$ 2300 & \$ 4000 \\\text { Initial cost } & 500 & 800 & 1300 \\\text { Sales price after staining } & 1650 & 2400 & 4400 \\\text { Cost of staining } & 100 & 190 & 300 \\& & & \\\text { Number sold per vear } & 300 & 300 & 150\end{array}
Required:
A. Which products should be staned? Support your answer with calculations.

B. If all the products are stained, what is the overall effect on net income? Support your answer with calculations

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