Crane Street Inc. makes unfinished bookcases that it sells for $58. Production costs are $38 variable and $10 fixed. Because it has unused capacity, Crane Street is considering finishing the bookcases and selling them for $71. 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 Crane Street should sell unfinished or finished bookcases. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses e.g. (45)) Sales price per unit Cost per unit Variable Fixed Total Net income per unit The bookcases $ Sell $ Process Further $ Net Income Increase (Decrease)

Crane Street Inc. makes unfinished bookcases that it sells for $58. Production costs are $38 variable and $10 fixed. Because it has unused capacity, Crane Street is considering finishing the bookcases and selling them for $71. 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 Crane Street should sell unfinished or finished bookcases. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses e.g. (45)) Sales price per unit Cost per unit Variable Fixed Total Net income per unit The bookcases $ Sell $ Process Further $ Net Income Increase (Decrease)

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 13MC: Mallorys Video Supply has changed its focus tremendously and as a result has dropped the selling...

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