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just olya [345]
3 years ago
13

Pine Street Inc. makes unfinished bookcases that it sells for $58. Production costs are $38 variable and $10 fixed. Because it h

as unused capacity, Pine Street 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 showing whether Pine Street should sell unfinished or finished bookcases. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Business
1 answer:
mars1129 [50]3 years ago
7 0

Answer:

See explanation below

Explanation:

Option of selling unfinished bookcase

Sales

$58

Less Variable cost

$38

Contribution

$20

Less fixed cost

$10

Net profit

$10

Option of selling finished bookcases

Sales

$73

Less variable cost

$7

Contribution

$66

Less fixed cost

$10

Net profit

$56

With regards to the above analysis, it is recommended that Pine street inc. Should go with the option of selling finished bookcases because it would yield the company the highest profit.

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Answer:

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Explanation:

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Expected dividend at the end of Year 1 (D1) = $ 2.30 (given in question)

Net proceeds per share = (21.30 - 4 % of 21.30) = $ 20.448

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= 15.25 % - 12 % (given in question)

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Answer:

225,000 shares

Explanation:

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3 years ago
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Which activity best demonstrates the trait of responsibility?

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Answer:

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