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Sheridan Inc. makes unfurnished bookcases that it tells for $57. Production costs are $37 variable and $9 fixed. Because it has unused capacity, sheridan is
Sheridan Inc. makes unfurnished bookcases that it tells for $57. Production costs are $37 variable and $9 fixed. Because it has unused capacity, sheridan is considering finishing the bookcases and selling them for $70. Variable finishing costs are expected to be $7 per unit with no increase in fixed costs.
Prepare an analysis on a per unit basis that shows whether sheridan should sell unfurnished or finished bookcase
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