Question
Bramble Street Inc. makes unfinished bookcases that it sells for $59. Production costs are $38 variable and $10 fixed. Because it has unused capacity, Bramble
Bramble Street Inc. makes unfinished bookcases that it sells for $59. Production costs are $38 variable and $10 fixed. Because it has unused capacity, Bramble Street is considering finishing the bookcases and selling them for $73. Variable finishing costs are expected to be $6 per unit with no increase in fixed costs. Prepare an analysis on a per unit basis showing whether Bramble Street should sell unfinished or finished bookcases. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Sell | Process Further | Net Income Increase (Decrease) | |||||
Sales price per unit | $ | $ | $ | ||||
Cost per unit | |||||||
Variable | |||||||
Fixed | |||||||
Total | |||||||
Net income per unit | $ | $ | $ |
The bookcases should be processed furthershould be sold without further processing . |
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