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Novak Inc. makes unfinished bookcases that it sells for $ 6 0 . Production costs are $ 3 8 variable and $ 1 0 fixed.

Novak Inc. makes unfinished bookcases that it sells for $60. Production costs are $38 variable and
$10 fixed. Because it has unused capacity, Novak is considering finishing the bookcases and selling
them for $72. Variable finishing costs are expected to be $9 per unit with no increase in fixed
costs.
Prepare an analysis on a per-unit basis that shows whether Novak should sell unfinished or
finished bookcases. (If an amount reducesthe net income then enter with a negative sign preceding the
number, e.g.-15,000 or parenthesis, e.g.(15,000).)
Sell Process Further
Sales per unit
$ $ $
Variable cost per
unit
Fixed cost per unit
Total per unit cost
Net income per unit
$ $ $
The bookcases processed further.

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