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:

Toxic Materials

Substances that are harmful or deadly to living organisms when introduced or absorbed.

Electronic Devices

Equipment that uses the principles of electronics to function, including smartphones, computers, and televisions.

Toxic Waste

Hazardous materials requiring careful disposal to protect human health and the environment.

Social Dumping

A practice where businesses move operations to countries with lower labor standards or wages to reduce costs, often criticized for exploiting workers and undermining labor rights.