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Question 1: Fritz Furniture sells unfinished wood bookshelves. Recently, the company contemplated switching to production of painted bookshelves, but it determined its net income per unit for the painted shelves would be $12 lower than that for the unpainted shelves. Shortly after reaching this conclusion, Fritz discovered that it overestimated its fixed production costs for the unfinished shelves by $15 and underestimated its variable production costs for the finished shelves by $10. If Fritz performs incremental analysis using the correct cost estimates, it will find that
A : the net income per unit for the painted shelves is now $13 greater than for the unpainted shelves.
B : the net income per unit for the painted shelves is now $22 less than that for the unpainted shelves.
C : the net income per unit for the painted shelves is now $17 less than that for the unpainted shelves.
D : the net income per unit for the painted shelves is now $3 greater than for the unpainted shelves.
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