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Fixed Overheads Are £40,000; Direct Materials Per Unit £6; Direct

question 46

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Fixed Overheads are £40,000; Direct Materials per unit £6; Direct Labour per unit £2, Budgeted Production 10,000 units; Mark up is 25% on full absorption cost. The unit Selling Price is

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Definitions:

Difference Threshold

The degree of difference that must exist between two stimuli before the difference is detected.

Inattentional Blindness

The phenomenon where an individual fails to perceive an unexpected stimulus that is in plain sight, due to the attention being focused on another task or aspect of their environment.

Inattentional Blindness

The phenomenon where an individual fails to notice a fully visible, but unexpected object because their attention was engaged on another task, event, or object.

Absolute Threshold

The minimum intensity of a stimulus that can be detected by a person's senses at least 50% of the time.

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