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Under absorption costing a company had the following per unit costs when 10.000 units were produced.
direct labor $2.direct material $3variable overhead $4TOTAL VARIABLE COST $9fixed overhead(50,000/10,000 units)$5TOTAL PRODUCTION COST PER UNIT $14
compute the company's total production cost per unit if 25,000 units had been produced.
why might a manager of a company using absorption costing produce more units then can currently be sold?
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