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Current Attempt in Progress Bonita Inc. makes unfinished bookcases that it sells for $57. Production costs are $37 variable and $9 fixed. Because it has
Current Attempt in Progress Bonita Inc. makes unfinished bookcases that it sells for $57. Production costs are $37 variable and $9 fixed. Because it has unused capacity, Bonita is considering finishing the bookcases and selling them for $74. Variable finishing costs are expected to be $7 per unit with no increase in fixed costs. Prepare an analysis on a per-unit basis that shows whether Bonita 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).) Sales per unit Variable cost per unit Fixed cost per unit Total per unit cost Net income per unit $ $ Sell 57 37 9 46 11 $ $ Process Further 74 44 9 53 21 $ $ Net Income Increase (Decrease)
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