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McIntyre Manufacturing produces a single product. Last year, the company produced 20,000 units, out of which 18,000 were sold. There were no units in beginning inventory. The company had the following costs:
Variable Costs per unit
Production $10.00
S&A $4.00
Fixed Costs (total)
Production $40,000
S&A $20,000
Required:
A. Calculate McIntyre's product cost per unit, assuming that the company uses variable costing.
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