Solved: The cost to manufacture an unfinished unit is 120 90, Accounting Basics

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The cost to manufacture an unfinished unit is 120 90

Question - The cost to manufacture an unfinished unit is $120 $(90 variable, ,$30 fixed) The selling price per unit is $150. The company has unused productive capacity and has determined that units could be finished and sold for $195 with an increase in variable cost of 40%. What is the additional net income per unit to be gained by finishing the unit?

a. $9

b. $30

c. $45

d. $36

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Accounting Basics: The cost to manufacture an unfinished unit is 120 90

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Accounting Basics: The cost to manufacture an unfinished unit is 120 90

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