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Katen [24]
4 years ago
5

Pine Street Inc. makes unfinished bookcases that it sells for $62. Production costs are $36 variable and $10 fixed. Because it h

as 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 amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Business
1 answer:
Gelneren [198K]4 years ago
3 0

Answer:

They should continue production to finished bookcases.

Explanation:

Giving the following information:

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.

Unfinished bookcases profit= 62 - 36 - 10= $16

Finished bookcases profit= 70 - 46 - 6= $18

They should continue production to finished bookcases.

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Explanation:

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3 years ago
In addition to compensation, customers expect _____. in other words, they expect fairness in terms of policies, rules and timeli
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