Homework for Ch 20 LO 4 - Sell vs. Process FurtherQuestion 1 of 2Sales price per unitPine Street Inc. makes unfinished bookcases that it sells for $59. Production costs are $38 variable and $10 fixed. Because it hasunused capacity, Pine Street is considering finishing the bookcases and selling them for $75. Variable finishing costs are expected to be$8 per unit with no increase in fixed costs. Prepare an analysis on a per unit basis showing whether Pine Street should sell unfinishedor finished bookcases. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)Cost per unitVariableFixedTotalNet income per unit$SellThe bookcases should be processed further381059IN48 i11tAProcessFurther758O8670.44/1$Net IncomeIncrease (Decrease)-16301040E :-56

Whether a product should be further processed or not? If further processing cost is less than the…

Answered: Pine Street Inc. makes unfinished…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 19E

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