Q33

Vaughn Inc. makes unfinished bookcases that it sells for $58. Production costs are $37 variable and $10 fixed. Because it has unused capacity, Vaughn is considering finishing the bookcases and selling them for $72. Variable finishing costs are expected to be $8 per unit with no increase in fixed costs Prepare an analysis on a per-unit basis that shows whether Vaughn should sell unfinished or finished bookcases. (If an amount reduces the net Income then enter with a negative sign preceding the number, e.g.-15,000 or parenthesis, es. (15,000). Net Income Increase (Decrease) Sell Process Further Sales per unit $ Variable cost per unit Fixed cost per unit Total per unit cost $ Net income per unit The bookcases processed further