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Pine Street Inc. makes unfinished bookcases that it sells for $62. Production costs are $36 variable and $10 fixed. Because it has unused capacity,
Pine Street Inc. makes unfinished bookcases that it sells for $62. Production costs are $36 variable and $10 fixed. Because it has unused capacity, Pine Street is considering finishing the bookcases and selling them for $70. Variable finishing costs are expected to be $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 number eg.-45 or parentheses eg. (45)) Sell Sales price per unit $ Cost per unit Variable: Process Further 62 $ 70 $ Net Income Increase (Decrease) 8 Fixed 36 42 Total 10 10 0 Net income per unit 16 18 2
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