Question
Pine Street Inc. makes unfinished bookcases that it sells for $59.37. Production costs are $37.59 variable and $9.54 fixed. Because it has unused capacity, Pine
Pine Street Inc. makes unfinished bookcases that it sells for $59.37. Production costs are $37.59 variable and $9.54 fixed. Because it has unused capacity, Pine Street is considering finishing the bookcases and selling them for $70.62. Variable finishing costs are expected to be $5.64 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. (Round answers to 2 decimal places, e.g. 15.25. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
used capacity incrcasc fixed costs. Prepare an analysis on a per unit baais showing whethcr Pne 5brectshould acl unrnahed or finished bookcascs. (Round answers to 2 decimal places, e.g. 5.25. Enter negative amounts using either a negative sign preceding the number e.g. 45 or parentheses 45). Sales price per unit rixed Net income per unitStep by Step Solution
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