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Blossom Inc. makes unfinished bookcases that it sells for $60. Production costs are $38 variable and $10 fixed. Because it has unused capacity, Blossom is
Blossom Inc. makes unfinished bookcases that it sells for $60. Production costs are $38 variable and $10 fixed. Because it has unused capacity, Blossom is considering finishing the bookcases and selling them for $75. Variable finishing costs are expected to be $9 per unit with no increase in fixed costs. Prepare an analysis on a per-unit basis that shows whether Blossom should sell unfinished or finished bookcases. (If an amount reduces the net income then enter with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000).) Sell Process Further Net Income Increase (Decrease) Sales per unit $ $ 6A Variable cost per unit Fixed cost per unit Total per unit cost $ Net income per unit
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