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o. Assuming Classic Cabinets is considering adding another product line - bookshelves (Keeping the cabinet production constant at 800 units). How many units should the
o. Assuming Classic Cabinets is considering adding another product line - bookshelves (Keeping the cabinet production constant at 800 units). How many units should the company sell to make adding the additional line economically feasible/attractive? Adding this line will require hiring a different type of worker which costs the company $15/hour. Classic Cabinets estimated each unit takes 10 hours of labor, and $500 direct materials. This line is estimated to incur additional fixed MOH $466,250 for the year, and variable costs/expenses per unit are the same as the cabinet product line. This bookshelf product line does not add additional fixed period costs, but shares the fixed period costs with the Cabinet line. Classic Cabinets estimated sales price of each bookshelf would be $1,500
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