Question

Pine Street Inc. maks unfinished bookases that it sells for $62. Production costs are $36 Variable...

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

0 0
Add a comment Improve this question Transcribed image text
Know the answer?
Add Answer to:
Pine Street Inc. maks unfinished bookases that it sells for $62. Production costs are $36 Variable...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Pine Street Inc. makes unfinished bookcases 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...

    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...

    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...

    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...

    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 $3...

    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....

  • Jensen 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:

    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...

    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...

    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...

    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...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT