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Pine Street Inc. makes unfinished bookcases that it sells for $59. Production costs are $ 38 variable and $ 10 fixed. Because it has unused
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 $ 70. Variable finishing costs are expected to be $8 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 Process Further Net Income Increase (Decrease) Sales price per unit $ 59 $ Cost per unit Variable -38 Fixed - 10 - 10 0 Total -48 Net income per unit $ 11 The bookcases should be processed further
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