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Is this correct? I'm concerned about the Net Income column. Is it -6 or 6? Pine Street Inc. makes unfinished bookcases that it sells for
Is this correct? I'm concerned about the Net Income column. Is it -6 or 6?
Pine Street Inc. makes unfinished bookcases that it sells for $59. Production costs are $38 variable and $10 fixed. Because it has unused capacity, Pine Street is considering finishing the bookcases and selling them for $73. Variable finishing costs are expected to be an additional $6 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. (Enter negative amounts using either a negative sign preceding the numbereg.-45 or parentheses eg. (45).) Process Further Net Income Increase (Decrease) Sell 59 73 14 Sales price per unit Cost per unit Variable 38 44 Fixed 10 10 Total 48 54 -6 Net income per unit 11 $ 19 8 The bookcases should be processed further Save for Later Last saved 1 second ago. Attempts: 0 of 1 used Submit Answer HILIStep by Step Solution
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