Pine Street Inc. makes unfinished bookcases that it sells for $59. Production costs are $38 variable and $10 fixed. Because it has unused capacity, Pine Street is considering finishing the bookcases and selling them for $75. Variable finishing costs are expected to be $7 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. (Enter negative amounts using either a negative sign preceding the number e.g. -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)
Pine Street Inc. makes unfinished bookcases that it sells for $59. Production costs are $38 variable and $10 fixed. Because it has unused capacity, Pine Street is considering finishing the bookcases and selling them for $75. Variable finishing costs are expected to be $7 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. (Enter negative amounts using either a negative sign preceding the number e.g. -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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![Pine Street Inc. makes unfinished bookcases that it sells for $59. Production costs are $38 variable and $10 fixed. Because it has
unused capacity, Pine Street is considering finishing the bookcases and selling them for $75. Variable finishing costs are expected to be
$7 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. (Enter negative amounts using either a negative sign preceding the number e.g. -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)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1a2ec30c-af20-4dbc-9985-f258a025151e%2F0114580c-7fdb-4c05-a3b7-e528b44cd62c%2F8gcfwbr_processed.png&w=3840&q=75)
Transcribed Image Text:Pine Street Inc. makes unfinished bookcases that it sells for $59. Production costs are $38 variable and $10 fixed. Because it has
unused capacity, Pine Street is considering finishing the bookcases and selling them for $75. Variable finishing costs are expected to be
$7 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. (Enter negative amounts using either a negative sign preceding the number e.g. -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)
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