Brief Exercise 26-5
Pine Street Inc. makes unfinished bookcases that it sells for $59.19. Production costs are $37.72 variable and $9.57 fixed. Because it has unused capacity, Pine Street is considering finishing the bookcases and selling them for $73.16. Variable finishing costs are expected to be $7.41 per unit with no increase in fixed costs. Prepare an analysis on a per unit basis showing whether Pine Street should sell unfinished or finished bookcases. (Round answers to 2 decimal places, e.g. 15.25. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
|Net Income |
|Sales price per unit||$||$||$|
|Cost per unit|
|Net income per unit||$||$||$|
|The bookcases ?should be sold without further processingshould be processed further.|
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