prepare an incremental analysis for the sell or process further decision

24 - Sandhill Bikes could sell its bicycles to retailers either assembled or unassembled. The cost of an unassembled bike is as follows Direct materials $180 Direct labor 80 56 Variable overhead (70% of direct labor) Fixed overhead (30% of direct labor) 24 $ 340 Manufacturing cost per unit The unassembled bikes are sold to retailers at $ 516 each. Sandhill has unused productive capacity that is expected to continue indefinitely management as concluded that some of this capacity could be used to assemble the bikes and sell them ar $ 557 each Assembling the bikes will increase direct materials by 55 per bike and direct labor by $ 10 per bike. Additional variable overhead will be incurred at the normal rates but there will be now fixed overhead as a result of assembling the bikes. Process Further Net Income Increase (Decrease) Sell $ $ Sales per unit Materials Net income per unit Costs per unit Labor Total Fixed overhead Variable overhead C. $