Metlock Inc. makes unfinished bookcases that it sells for $60. Production costs are $37 variable and $9 fixed. Because it has unused capacity, Metlock is considering finishing the bookcases and selling them for $73. 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 Metlock should sell unfinished or finished bookcases. (If an amount reduces the net income then enter with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000).) Sales per unit Variable cost per unit Fixed cost per unit Total per unit cost Net income per unit The bookcases $ Sell processed further. $ Process Further $ Net Income Increase (Decrease)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Metlock Inc. makes unfinished bookcases that it sells for $60. Production costs are $37 variable and $9 fixed. Because it has unused
capacity, Metlock is considering finishing the bookcases and selling them for $73. 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 Metlock should sell unfinished or finished bookcases. (If an amount
reduces the net income then enter with a negative sign preceding the number, e.g.-15,000 or parenthesis, e.g. (15,000).)
Sales per unit
Variable cost per unit
Fixed cost per unit
Total per unit cost
Net income per unit
The bookcases
$
$
Sell
processed further.
$
Process Further
Net Income
Increase.
(Decrease)
Transcribed Image Text:Metlock Inc. makes unfinished bookcases that it sells for $60. Production costs are $37 variable and $9 fixed. Because it has unused capacity, Metlock is considering finishing the bookcases and selling them for $73. 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 Metlock should sell unfinished or finished bookcases. (If an amount reduces the net income then enter with a negative sign preceding the number, e.g.-15,000 or parenthesis, e.g. (15,000).) Sales per unit Variable cost per unit Fixed cost per unit Total per unit cost Net income per unit The bookcases $ $ Sell processed further. $ Process Further Net Income Increase. (Decrease)
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