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Carla Vista Bikes could sell its bicycles to retailers either assembled or unassembled. The cost of an unassembled bike is as follows Direct materials $144 60 42 Direct labor Variable overhead (70% of direct labor) Fixed overhead (30% of direct labor) Manufacturing cost per unit 18 $264 The unassembled bikes are sold to retailers at $436 each Carla Vista has unused productive capacity that is expected to continue indefinitely management has concluded that some of this capacity could be used to assemble the bikes and sell them at $485 each. Assembling the bikes will increase direct materials by $5 per bike and direct labor by $10 per bike. Additional variable overhead will be incurred at the normal rates, but there will be no additional fixed overhead as a result of assembling the bikes. Sell Further (Decrease) $ > > . $ Should Carla Vista sell or process further? Carla Vista Bikes should Materials Costs per unit Sales per unit Labor Variable overhead Net income per unit Total Fixed overhead ta $