Use the Following Information for Items

question 4

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 anufacturing cost per unit be under variable costing for each alternative?

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Definitions:

Private Placements

A means of raising capital through the sale of securities to a relatively small number of select investors rather than through a public offering.

Corporate Debt Issues

refer to the financial obligations or borrowings taken on by companies, typically through the issuance of bonds, loans, or commercial paper.

Corporate Equity Issues

The process by which companies issue shares of stock to raise equity capital.

Municipal Debt Issues

Bonds or other forms of debt issued by municipalities to finance public projects.