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Blossom Street Inc. makes unfinished bookcases that it sells for $58. Production costs are $38 variable and $10 hxed. Because it has unused capacity,
Blossom Street Inc. makes unfinished bookcases that it sells for $58. Production costs are $38 variable and $10 hxed. Because it has unused capacity, Blossom Street is considering finishing the bookcases and selling them for $74. Variable finishing costs are expected to be $8 per unit with no increase in fixed costs. Prepare an analysis on a per unit basis showing whether Blossom Street should sell unfinished or finished bookcases. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses e.g. (45).) Sell Process Further Sales price per unit $ $ Cost per unit Variable Fixed Total Net income per unit $ The bookcases $ Net Income Increase (Decrease) $
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