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Crane Inc. makes unfinished bookcases that it sells for $59. Production costs are $38 variable and $10 fixed. Because it has unused capacity, Crane is
Crane Inc. makes unfinished bookcases that it sells for $59. Production costs are $38 variable and $10 fixed. Because it has unused capacity, Crane is considering finishing the bookcases and selling them for $73. 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 Crane should sell unfinished or finished bookcases. (Enter negative amounts using either a negative sign preceding the number 8. -45 or parentheses eg. (45)) Sell Process Further Net Income Increase (Decrease) Sales price per unit $ $ Cost per unit Variable Fixed Total Net income per unit 5
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