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Prepare an analysis on a per-unit basis

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Reference no: EM132890570

Question - Green Inc. makes unfinished bookcases that it sells for $59. Production costs are $38 variable and $9 fixed. Because it has unused capacity, Green 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 Green should sell unfinished or finished bookcases.

Reference no: EM132890570

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