Question
Pine Street Inc. makes unfinished bookcases that it sells for $57.00. Production costs are $37.20 variable and $9.50 fixed. Because it has unused capacity, Pine
Pine Street Inc. makes unfinished bookcases that it sells for $57.00. Production costs are $37.20 variable and $9.50 fixed. Because it has unused capacity, Pine Street is considering finishing the bookcases and selling them for $70.00. Variable finishing costs are expected to be $5.50 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).)
Brief Exercise 21-5 Pine Street Inc. makes unfinished bookcases that it sells for $57.00. Production costs are $37.20 variable and $9.50 fixed. Because it has unused capacity, Pine Street is considering finishing the bookcases and selling them for $70.00. Variable finishing costs are expected to be $5.50 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).) Sell Unfinished Process Further Net Income Increase (Decrease) Sales price per unit Cost per unit ? Variable Fixed Total Net income per unit s The bookcase should be sold without further processing should be processed further LINK TO TEXTStep by Step Solution
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