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Sheffield Inc makes unfurnished bookcases that it sells for $58. Production costs are $37 variable and $10 fixed. Because it has unused capacity, Sheffield is
Sheffield Inc makes unfurnished bookcases that it sells for $58. Production costs are $37 variable and $10 fixed. Because it has unused capacity, Sheffield is considering finishing the bookcases and selling them for $74. Variable finishing costs are expected to be $9 per unit with no increase in fixed costs. Prepare an analysis on a per-unit basis that shows whether Sheffield should sell unfurnished or finished bookcases.
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