Question
Pine Street Inc. makes unfinished bookcases that it sells for $58. Production costs are $38variable and $10fixed. Because it has unused capacity, Pine Street is
Pine Street Inc. makes unfinished bookcases that it sells for $58. Production costs are $38variable and $10fixed. Because it has unused capacity, Pine Street is considering finishing the bookcases and selling them for $74. Variable finishing costs are expected to be $7per 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 e.g. -45 or parentheses e.g. (45).)
Sell Process Further Net Income
Increase (Decrease)
Sales price per unit
Cost per unit
Variable
Fixed
Total
Net income per unit
The bookcasesa. Should be processed further
b. Should be sold without further processing
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