Sandhill Street Inc. makes unfinished bookcases that it sells for $59. Production costs are $38 variable and $10 fixed. Because it has unused capacity, Sandhill Street is considering finishing the bookcases and selling them for $73. Variable finishing costs are expected to be $6 per unit with no increase in fixed costs. Prepare an analysis on a per unit basis showing whether Sandhill 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).) Process Sell Further Net Income Increase (Decrease) Sales price per unit $ $ $ Cost per unit Variable Fixed Total Net income per unit $ $ $ The bookcases
Sandhill Street Inc. makes unfinished bookcases that it sells for $59. Production costs are $38 variable and $10 fixed. Because it has unused capacity, Sandhill Street is considering finishing the bookcases and selling them for $73. Variable finishing costs are expected to be $6 per unit with no increase in fixed costs. Prepare an analysis on a per unit basis showing whether Sandhill 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).) Process Sell Further Net Income Increase (Decrease) Sales price per unit $ $ $ Cost per unit Variable Fixed Total Net income per unit $ $ $ The bookcases
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1
Transcribed Image Text:Sandhill Street Inc. makes unfinished bookcases that it sells for $59. Production costs are $38 variable and $10 fixed. Because it has
unused capacity, Sandhill Street is considering finishing the bookcases and selling them for $73. Variable finishing costs are expected
to be $6 per unit with no increase in fixed costs. Prepare an analysis on a per unit basis showing whether Sandhill 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).)
Process
Sell
Further
Sales price per unit
$
$
Cost per unit
Net Income
Increase (Decrease)
Variable
Fixed
Total
Net income per unit
The bookcases
$
+A
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