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

Net income: Net income is the excess amount of revenue after deducting all the expenses of a…

Answered: Pine Street Inc. makes unfinished…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Sweet Acacia Inc. makes unfinished bookcases that it sells for $58. Production costs are $38 variable and $9 fixed. Because it has unused capacity, Sweet Acacia is considering finishing the bookcases and selling them for $72. 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 Sweet Acacia should sell unfinished or finished bookcases. (If an amount reduces the net income then enter with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000).) Sales per unit Variable cost per unit Fixed cost per unit Total per unit cost Net income per unit The bookcases 69 $ Sell ✓processed further. LA GA Process Further $ $ Net Income Increase (Decrease)
Wildhorse Street Inc. makes unfinished bookcases that it sells for $59. Production costs are $38 variable and $10 fixed. Because it has unused capacity, Wildhorse 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 Wildhorse 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).) Sales price per unit Cost per unit Variable Fixed Total $ Net income per unit $ Sell The bookcases should be processed further 59 38 10 48 11 $ $ Process Further 73 10 $ $ Net Income Increase (Decrease) -14 0
Pine Street Inc. makes unfinished bookcases that it sells for $57. Production costs are $38 variable and $10 fixed. Because it has unused capacity. Pine Street is considering finishing the bookcases and selling them for $72. 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 parentheses eg. (45)) Sales price per unit Cost per unit Variable Fixed Total Net income per unit $ The bookcases Sell Process Further Net Income Increase (Decrease)
Carla Vista Street Inc. makes unfinished bookcases that it sells for $59. Production costs are $38 variable and $10 fixed. Because it has unused capacity, Carla Vista 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 Carla Vista 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).) Process Net Income Sell Further Increase (Decrease) Sales price per $ $ 2$ unit Cost per unit Variable Fixed Total Net income 2$ 24 $ per unit The bookcases
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Cullumber Street Inc. makes unfinished bookcases that it sells for $59. Production costs are $38 variable and $10 fixed. Because it has unused capacity, Cullumber Street is considering finishing the bookcases and selling them for $71. 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 Cullumber Street should sell unfinished or finished bookcases. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg. (45).) Sales price per unit $ Cost per unit Variable Fixed Total Sell Process Further $ $ Net Income Increase (Decrease) Net income per unit SUPPORT $ $ $
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.
Sheridan manufactures unpainted furniture for the do-it-yourself market. It currently sells a table for $65. Production costs are $35 variable and $10 fixed. Sheridan is considering staining and sealing the table to sell it for $100. Variable costs to finish each table are expected to be $13, and fixed costs are expected to be $1. Prepare an analysis showing whether Sheridan should sell unpainted or finished tables. (If an amount reduces the net income then enter with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000).) Incremental revenue $ Incremental cost $ Increase (decrease) in contribution margin Sheridan eTextbook and Media process the tables further. Net Income Increase (Decrease) SUPPORT
Meg's Manufacturing Company can make 211 units of a component part for variable costs of $159,896 and fixed costs of $32,104. The compnay decides the buy the part externally instead for $153,734 and $4,789 of the fixed costs will be avoided. How much will net income increase or decrease? If net income increases, make your answer positive; If net income decreases, put a (-) negative sign in front of the answer. Round your answer to the nearest whole dollar and do not type the dollar sign.
Hazel Company makes an unassembled product that it currently sells for $55. Production costs are $20. Hazel is considering assembling the product and selling it for $68. The cost to assemble the product is estimated at $12. What decision should Hazel make? A) Sell before assembly; net income per unit will be $12 greater. B) Sell before assembly; net income per unit will be $1 greater. C) Process further; net income per unit will be $13 greater. D) Process further; net income per unit will be $1 greater. 24 E) none of the above
Sheffield Corp. is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $27 and Sheffield would sell it for $62. The cost to assemble the product is estimated at $19 per unit and the company believes the market would support a price of $66 on the assembled unit. What decision should Sheffield make and why? O Process further because the company will be better off by $16 per unit. O Sell before assembly because the company will be better off by $15 per unit. O Sell before assembly because the company will be better off by $4 per unit. O Process further because the company will be better off by $12 per unit.
Vaughn Manufacturing is starting business and is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $65 and Vaughn Manufacturing would sell it for $145. The cost to assemble the product is estimated at $28 per unit and Vaughn Manufacturing believes the market would support a price of $178 on the assembled unit. What is the correct decision using the sell or process further decision rule and why? Process further because profits will be greater by $33 per unit. Sell before assembly because profits will be greater by $33 per unit. Sell before assembly because profits will be greater by $28 per unit. O Process further because profits will be greater by $5 per unit. eTextbook and Media Save for Later Attempts: 2 of 3 used Submit Answer

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