Given the Following Data, Total Product Cost Per Unit Under

question 188

True/False

Given the following data, total product cost per unit under absorption costing is $11.40.

---

Definitions:

Margin of Safety

The difference between actual or expected sales and the break-even point, representing the cushion against potential losses.

Variable Cost

Expenses that change in proportion to the activity of a business, such as costs for raw materials or production supplies.

Fixed Costs

Expenses that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Contribution Margin Ratio

The proportion of sales revenue that remains after variable production costs are deducted, indicating the profitability of specific products.