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Pine Street Inc. makes unfinished bookcases that it sells for $59.15. Production costs are $37.97 variable and $9.53 fixed. Because it has unused capacity, Pine
Pine Street Inc. makes unfinished bookcases that it sells for $59.15. Production costs are $37.97 variable and $9.53 fixed. Because it has unused capacity, Pine Street is considering finishing the bookcases and selling them for $70.65. Variable finishing costs are expected to be $6.32 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.
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