If Variable Manufacturing Costs Are $15 Per Unit and Total

question 131

Essay

If variable manufacturing costs are $15 per unit and total fixed manufacturing costs are $200,000,what is the manufacturing cost per unit if:
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(a)20,000 units are manufactured and the company uses the variable costing concept?
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(b)25,000 units are manufactured and the company uses the variable costing concept?
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(c)20,000 units are manufactured and the company uses the absorption costing concept?
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(d)25,000 units are manufactured and the company used the absorption costing concept?

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Definitions:

Approach

The initial step in the sales process, where the salesperson makes contact with potential customers and begins to establish a relationship.

Introductory Approach

A strategy used to make a first impression or initial proposal to potential clients or customers.

Cotton-Polyester Blend

A fabric made by combining cotton and polyester fibers, known for its durability, wrinkle resistance, and easy care.