Metlock Inc. makes unfinished bookcases that it sells for $60. Production costs are $37 variable and $9 fixed. Because it has unused capacity, Metlock is considering finishing the bookcases and selling them for $73. Variable finishing costs are expected to be $7 per unit with no increase in fixed costs. Prepare an analysis on a per-unit basis that shows whether Metlock should sell unfinished or finished bookcases. (If an amount reduces the net income then enter with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000).) Sales per unit Variable cost per unit Fixed cost per unit Total per unit cost Net income per unit The bookcases $ Sell processed further. $ Process Further $ Net Income Increase (Decrease)
Metlock Inc. makes unfinished bookcases that it sells for $60. Production costs are $37 variable and $9 fixed. Because it has unused capacity, Metlock is considering finishing the bookcases and selling them for $73. Variable finishing costs are expected to be $7 per unit with no increase in fixed costs. Prepare an analysis on a per-unit basis that shows whether Metlock should sell unfinished or finished bookcases. (If an amount reduces the net income then enter with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000).) Sales per unit Variable cost per unit Fixed cost per unit Total per unit cost Net income per unit The bookcases $ Sell processed further. $ Process Further $ Net Income Increase (Decrease)
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 1PB: Variety Artisans has a bottleneck in their production that occurs within the engraving department....
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