Pine Street Inc. makes unfinished bookcases that it sells for $59. Production costs are $38 variable and $10 fixed. Because it has unusedcapacity, Pine Street is considering finishing the bookcases and selling them for $75. Variable finishing costs are expected to be $8 per unitwith no increase in fixed costs. Prepare an analysis on a per unit basis showing whether Pine Street should sell unfinished or finishedbookcases. (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheseseg (45).)Net IncomeIncrease (Decrease)ProcessSellFurther$$$Sales price per unitCost per unitVariableFixedTotal$$Net income per unitThe bookcases3:02 P11/10/20

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Asked Nov 10, 2019
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Pine Street Inc. makes unfinished bookcases that it sells for $59. Production costs are $38 variable and $10 fixed. Because it has unused
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 unfinished or finished
bookcases. (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheseseg (45).)
Net Income
Increase (Decrease)
Process
Sell
Further
$
$
$
Sales price per unit
Cost per unit
Variable
Fixed
Total
$
$
Net income per unit
The bookcases
3:02 P
11/10/20
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Pine Street Inc. makes unfinished bookcases that it sells for $59. Production costs are $38 variable and $10 fixed. Because it has unused 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 unfinished or finished bookcases. (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheseseg (45).) Net Income Increase (Decrease) Process Sell Further $ $ $ Sales price per unit Cost per unit Variable Fixed Total $ $ Net income per unit The bookcases 3:02 P 11/10/20

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Expert Answer

Step 1

Net income: Net income is the excess amount of revenue after deducting all the expenses of a company. In simple terms, it is the difference between total revenue and total expenses of the company.

Step 2

Prepare an analysis on per uni...

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Process Net Income Difference Sell Further Increase (decrease) $59 $75 Sales price per unit (a) Less: Cost per unit Variable (b) Fixed (c) $16 $46 -$8 $38 $10 $10 Total (d) (b)(c) $48 $56 Net income per unit (e) $19 $8 а) - (d)

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