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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?

Correct Answer:

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(a)$15 (variable cost only) ​ ...

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