Use the Following Information for Items

question 19

Short Answer

Use the following information for items
The Colin Division of Mochrie Company sells its product for $30 per unit.Variable costs per unit are: manufacturing, $12; and selling and administrative, $2.Fixed costs are: $200,000 manufacturing overhead, and $50,000 selling and administrative.There was no beginning inventory.Expected sales for next year are 40,000 units.Ryan Stiles, the manager of the Colin Division, is under pressure to improve the performance of the Division.As he plans for next year, he has to decide whether to produce 40,000 units or 50,000 units.
-What would the manufacturing cost per unit be under absorption costing for each alternative?

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Definitions:

SLII

A model of leadership that proposes that the most effective leaders are those who are flexible, adapting their style according to the development level of their followers and the specific situation.

Leadership Style

Pertains to the manner in which a leader provides direction, implements plans, and motivates people, ranging from autocratic to democratic to laissez-faire styles.

Business Finance

The management of funds and other financial resources in a way that supports the organization's goals and operations.

SLII

Stands for Situational Leadership II, a leadership model that proposes the need to adjust the leadership style based on the maturity and competency level of the followers.