Crane Street Inc. makes unfinished bookcases that it sells for $58. Production costs are $38 variable and $10 fixed. Because it has unused capacity, Crane Street is considering finishing the bookcases and selling them for $71. Variable finishing costs are expected to be $8 per unit with no increase in fixed costs. Prepare an analysis on a per unit basis showing whether Crane Street should sell unfinished or finished bookcases. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses e.g. (45)) Sales price per unit Cost per unit Variable Fixed Total Net income per unit The bookcases $ Sell $ Process Further $ Net Income Increase (Decrease)
Crane Street Inc. makes unfinished bookcases that it sells for $58. Production costs are $38 variable and $10 fixed. Because it has unused capacity, Crane Street is considering finishing the bookcases and selling them for $71. Variable finishing costs are expected to be $8 per unit with no increase in fixed costs. Prepare an analysis on a per unit basis showing whether Crane Street should sell unfinished or finished bookcases. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses e.g. (45)) Sales price per unit Cost per unit Variable Fixed Total Net income per unit The bookcases $ Sell $ Process Further $ Net Income Increase (Decrease)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Crane Street Inc. makes unfinished bookcases that it sells for $58. Production costs are $38 variable and $10 fixed. Because it has
unused capacity, Crane Street is considering finishing the bookcases and selling them for $71. Variable finishing costs are expected to
be $8 per unit with no increase in fixed costs. Prepare an analysis on a per unit basis showing whether Crane Street should sell
unfinished or finished bookcases. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg. (45).)
Sales price per unit
Cost per unit
Variable
Fixed
Total
$
Net income per unit $
The bookcases
Sell
$
Process
Further
$
Net Income
Increase (Decrease)
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