Regal Manufacturing produces an unfinished product at a cost of $135 per unit ($100 variable costs, $35 fixed costs). The selling price of the unfinished unit is $170. The company has excess capacity and can finish the unit to sell for $220, but doing so will increase variable costs by 50%. What is the additional net income per unit to be gained by finishing the unit? a. $12 b. $40 c. $45 d. $35
Regal Manufacturing produces an unfinished product at a cost of $135 per unit ($100 variable costs, $35 fixed costs). The selling price of the unfinished unit is $170. The company has excess capacity and can finish the unit to sell for $220, but doing so will increase variable costs by 50%. What is the additional net income per unit to be gained by finishing the unit? a. $12 b. $40 c. $45 d. $35
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
Problem 7P
Question
Answer me please
![Regal Manufacturing produces an unfinished product at a
cost of $135 per unit ($100 variable costs, $35 fixed
costs). The selling price of the unfinished unit is $170. The
company has excess capacity and can finish the unit to
sell for $220, but doing so will increase variable costs by
50%.
What is the additional net income per unit to be gained by
finishing the unit?
a. $12
b. $40
c. $45
d. $35](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F01875928-73d5-487c-8824-cbe73555b9f8%2F778cfc80-65dd-450f-83b2-965c4d037802%2Fjjkrmas_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Regal Manufacturing produces an unfinished product at a
cost of $135 per unit ($100 variable costs, $35 fixed
costs). The selling price of the unfinished unit is $170. The
company has excess capacity and can finish the unit to
sell for $220, but doing so will increase variable costs by
50%.
What is the additional net income per unit to be gained by
finishing the unit?
a. $12
b. $40
c. $45
d. $35
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