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Compute the companys total production cost

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Reference no: EM13339196

Absorption costing and over-production

Under absorption costing, a company had the following per unit costs when 10,000 units were produced.

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1. Compute the company's total production cost per unit if 25,000 units had been produced.

2. Why might a manager of a company using absorption costing produce more units than can currently be sold?

Reference no: EM13339196

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