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Use the Following Information for Items
the Colin Division \quad

question 24

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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 variable costing for each alternative? \quad \quad \quad 40,000 units 50,000 units \underline{40,000 \text { units }} \quad \underline{50,000 \text { units }}
a) \quad \quad \quad \quad $12.00 \quad \quad \quad $12.00
b) \quad \quad \quad \quad $14.00 \quad \quad \quad $14.00
c) \quad \quad \quad \quad $16.00 \quad \quad \quad $17.00
d) \quad \quad \quad \quad $17.00 \quad \quad \quad $16.00

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Definitions:

Terminal Ganglia

Clusters of neurons located near or within the organs they innervate, primarily involved in the autonomic nervous system.

Autonomic Nervous System

A division of the peripheral nervous system responsible for regulating involuntary body functions like heartbeat, blood flow, breathing, and digestion.

Effectors

Cells, tissues, or organs that perform a response or action as a result of neural or hormonal stimulation, notably muscles contracting and glands secreting.

GI Tract

The gastrointestinal tract, a continuous tube running through the body from mouth to anus, involved in the digestion and absorption of nutrients.

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