Pine Street Inc. makes unfinished bookcases that it sells for $58.31. Production costs are $37.53 variable and $10.13 fixed. Because it has unused capacity, Pine Street is considering finishing the bookcases and selling them for $73.89. Variable finishing costs are expected to be $6.72 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).) Sell Process Net Income Unfinished Further Increase (Decrease) Sales price per unit %24 %24 Cost per unit Variable Fixed Total Net income per unit %24 The bookcases
Pine Street Inc. makes unfinished bookcases that it sells for $58.31. Production costs are $37.53 variable and $10.13 fixed. Because it has unused capacity, Pine Street is considering finishing the bookcases and selling them for $73.89. Variable finishing costs are expected to be $6.72 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).) Sell Process Net Income Unfinished Further Increase (Decrease) Sales price per unit %24 %24 Cost per unit Variable Fixed Total Net income per unit %24 The bookcases
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Pine Street Inc. makes unfinished bookcases that it sells for $58.31. Production costs are $37.53 variable and $10.13 fixed. Because it has unused capacity, Pine Street is considering finishing the
bookcases and selling them for $73.89. Variable finishing costs are expected to be $6.72 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).)
Sell
Process
Net Income
Unfinished
Further
Increase (Decrease)
Sales price per unit
%24
%24
Cost per unit
Variable
Fixed
Total
Net income per unit
%24
The bookcases
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