Pine Street Inc. makes unfinished bookcases that it sells for
$58.10. Production costs are $37.49 variable and $10.50 fixed.
Because it has unused capacity, Pine Street is considering
finishing the bookcases and selling them for $74.91. Variable
finishing costs are expected to be $5.79 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.
| Sell Unfinished | Process Further | Net income Increase (Decrease) | |
| Sales Price per unit | $______ | $______ | $______ |
| Cost Per Unit Variable | $______ | $______ | $______ |
| CPU Fixed | $______ | $______ | $______ |
| CPU Total | $______ | $______ | $______ |
| Net Incomer Per Unit | $______ | $______ | $______ |
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