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Sunnyvale Furniture Inc. makes unfinished chairs that it sells for $200. Production costs are $85 variable and $55 fixed. Because it has unused capacity,
Sunnyvale Furniture Inc. makes unfinished chairs that it sells for $200. Production costs are $85 variable and $55 fixed. Because it has unused capacity, Sunnyvale Furniture is considering finishing the chairs and selling them for $225. Variable finishing costs are expected to be an additional $35 per unit with no increase in fixed costs. Prepare an analysis on a per unit basis showing whether Sunnyvale Furniture should sell unfinished or finished chairs. Do NOT enter a dollar sign. For example, if you are typing $10,000 as your answer, answer should be typed as 10,000 without any dollar sign. For any negative amounts, enter them using either a negative sign preceding the number such as -50 or parentheses such as (50), If the amount is zero, enter 0. Sell or Process Further Sales Price per Unit Cost per Unit Variable Sell Fixed $ Total Costs per Unit $ Process Further $ $ +A +A $ 1A Net Income Increase (Decrease) A $ tA +9 A
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