Pine Street Inc. maks unfinished bookases that it sells for $62. Production costs are $36 Variable and $10 fixed. Because it has unused capacity. Pine street is considering finishing the book-case and selling them for $70. Variable finishing costs are expected to be $6 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
Pine Street Inc. maks unfinished bookases that it sells for $62. Production costs are $36 Variable...
Pine Street Inc. makes unfinished bookcases that it sells for $62. Production costs are $36 variable and $10 fixed. Because it has unused capacity, Pine Street is considering finishing the bookcases and selling them for $70. Variable finishing costs are expected to be $6 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. (Round answers to 2 decimal places, e.g. 15.25. Enter negative...
Brief Exercise 20-5 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. (Round answers to 2 decimal places, e.g....
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 $71. Variable finishing costs are expected to be an additional $7 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...
Pine Street Inc. makes unfinished bookcases that it sells for $59. Production costs are $38 variable and $10fixed. Because it has unused capacity, Pine Street is considering finishing the bookcases and selling them for $73. Variable finishing costs are expected to be $6 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...
Green Inc. makes unfinished bookcases that it sells for $57. Production costs are $37 variable and $9 fixed. Because it has unused capacity, Green is considering finishing the bookcases and selling them for $74. 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 Green should sell unfinished or finished bookcases. (If an amount reduces the net income then enter with a negative sign...
If revenues are $315,000 under alternative A and $324,000 under alternative B, and costs are $285,000 for A and $306,000 for B, then using the basic approach in incremental analysis, incremental revenues, costs, and net income in comparing B to A are respectively Select one: a. $9,000, $(21,000), $(12,000). b. $9,000, $21,000, $12,000. c. $(9,000), $21,000, $12,000. d.$(9,000), $(21,000), $(12,000). The cost to manufacture an unfinished unit is $120 ($90 variable, $30 fixed). The selling price per unit is $150....
Sell or Process FurtherJensen Manufacturing Company makes a partially completed assembly unit that it sells for $36 per unit. Normally, 42,000 units are sold each year. Variable unit cost data on the assembly are as follows:Direct material$10Direct labor8Variable manufacturing overhead4The company is now using only 70% of its normal capacity; it could fully use its normal capacity by processing the assembly further and selling it for $41 per unit. If the company does this, material and labor costs will each...
Lakeside Inc. produces a product that currently sells for $68.40 per unit. Current production costs per unit include direct materials, $19; direct labor, $21; variable overhead, $9.50; and fixed overhead, $9.50. Product engineering has determined that a certain part of the product conversion process could be outsourced. Raw material costs would not be affected, but direct labor and variable overhead costs would be reduced by 30%. No other opportunity is currently feasible for unused production capacity. Required: a. What would...
Mesa Verde manufactures unpainted furniture for the do-it-yourself (DIY) market. It currently sells a table for $70. Production costs are $40 variable and $10 fixed. Mesa Verde is considering staining and sealing the table to sell it for $102. Variable costs to finish each table are expected to be $18, and fixed costs are expected to be $1 Prepare an analysis showing whether Mesa Verde should process the tables further. (Enter negative amounts using either a negative sign preceding the...
Lakeside Inc. produces a product that currently sells for $68.00 per unit. Current production costs per unit include direct materials, $25; direct labor, $27; variable overhead, $12.50; and fixed overhead, $12.50. Product engineering has determined that certain production changes could refine the product quality and functionality. These new production changes would increase material and labor costs by 20% per unit. Lakeside has received an offer from a nonprofit organization to buy 9,500 units at $66.50 per unit. Lakeside currently has...