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Brief Exercise 20-5 Pine Street Inc. makes unfinished bookcases that it sells for $58.57. Production costs are $38.03 variable and $9.98 fixed. Because it has
Brief Exercise 20-5 Pine Street Inc. makes unfinished bookcases that it sells for $58.57. Production costs are $38.03 variable and $9.98 fixed. Because it has unused capacity, Pine Street is considering finishing the bookcases and selling them for $72.40. Variable finishing costs are expected to be $7.45 per unit with no increase in fixed costs. Prepare an analysis on a per unit basis showing whether Pine Street should sell unfinished or finished bookcases. (Round answers to 2 decimal places, e.g. 15.25. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Sell Unfinished Process Further Net Income Increase (Decrease) Sales price per unit Cost per unit s Variable Fixed Total Net income per units The bookcases Click if you would like to Show Work for this question: Open Show Work
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