Pine Street Inc. makes unfinished bookcases that it sells for $57.00. Production
ID: 2558273 • Letter: P
Question
Pine Street Inc. makes unfinished bookcases that it sells for $57.00. Production costs are $37.20 variable and $9.50 fixed. Because it has unused capacity, Pine Street is considering finishing the bookcases and selling them for $70.00. Variable finishing costs are expected to be $5.50 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).)
Brief Exercise 21-5 Pine Street Inc. makes unfinished bookcases that it sells for $57.00. Production costs are $37.20 variable and $9.50 fixed. Because it has unused capacity, Pine Street is considering finishing the bookcases and selling them for $70.00. Variable finishing costs are expected to be $5.50 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 Unfinished Process Further Net Income Increase (Decrease) Sales price per unit Cost per unit ? Variable Fixed Total Net income per unit s The bookcase should be sold without further processing should be processed further LINK TO TEXTExplanation / Answer
Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Sell Unfinished Process Further Net Income Increase (Decrease) Sales Price per unit 57.00 70.00 13.00 Cost per unit Variable 37.20 42.70 5.50 Fixed 9.50 9.50 - Total 46.70 52.20 5.50 Net Income per unit 10.30 17.80 7.50 The bookcase should be processed further