Chudrick inc makes unfinished bookcases that it sells for

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Chudrick Inc. makes unfinished bookcases that it sells for $58.58. Production costs are $37.81 variable and $9.56 fixed. Because it has unused capacity, Chudrick is considering finishing the bookcases and selling them for $71.76. Variable finishing costs are expected to be $7.52 per unit with no increase in fixed costs. Prepare an analysis on a per unit basis showing whether Chudrick should sell unfinished or finished bookcases.



Sell
Process Further
Net Income
Increase (Decrease)

Sales price per unit
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Cost per unit






   Variable
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   Fixed
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      Total
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Net income per unit
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Reference no: EM13579549

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