Should Crane sell or process further?

Question 43 of 43 -/24 !!! View Policies Current Attempt in Progress Crane Bikes could sell its bicycles to retailers either assembled or unassembled. The cost of an unassembled bike is as follows. Direct materials $ 189 Direct labor 80 Variable overhead (70% of direct labor) 56 Fixed overhead (30% of direct labor) 24 Manufacturing cost per unit $ 349 The unassembled bikes are sold to retailers at $ 531 each. Crane has unused productive capacity that is expected to continue indefinitely; management has concluded that some of this capacity could be used to assemble the bikes and sell them at $ 575 each. Assembling the bikes will increase direct materials by $5 per bike and direct labor by $10 per bike. Additional variable overhead will be incurred at the normal rates, but there will be no additional fixed overhead as a result of assembling the bikes. Question 43 of 43 $