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31 October, 00:32

Pine Street Inc. makes unfinished bookcases that it sells for $58.09. Production costs are $37.97 variable and $10.12 fixed. Because it has unused capacity, Pine Street is considering finishing the bookcases and selling them for $73.08. Variable finishing costs are expected to be $6.64 per unit with no increase in fixed costs. Prepare an analysis on a per unit basis showing whether Pine Street should sell unfinished or finished bookcases. (Round answers to 2 decimal places, e. g. 15.25. Enter negative amounts using either a negative sign preceding the number e. g. - 45 or parentheses e. g. (45).)

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  1. 31 October, 00:52
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    Check the table in the explanation

    Explanation:

    Differential analysis

    Sell Process Net income unfinished further increase (decrease)

    Sale price per unit 58.09 73.08 14.99

    Cost per unit

    variable 37.97 44.61 - 6.64

    Fixed 10.12 10.12 0

    total 48.09 54.73 8.35

    Net income per unit 10 18.35 8.35

    The book cases should be sold after processed further
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