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Why might a manager of a company using absorption costing

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Reference no: EM13509083

Under absorption costing a company had the following per unit costs when 10.000 units were produced.

direct labor $2.
direct material $3
variable overhead $4
TOTAL VARIABLE COST $9
fixed overhead(50,000/10,000 units)$5
TOTAL 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?

Reference no: EM13509083

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