19. The sales manager of a company is determining the best selling price for its new product. The manager expects that all costs incurred to make the product should be included in the decision. Should the manager use the variable or absorption costing method to determine the selling price? 20. In the past few years, a manufacturer has not produced sufficient units in order to meet the year's sales. Management would like to produce enough products to meet demand and have an ending inventory. The company expects to incur additional fixed costs due to the increase in production. Should management use the variable or absorption costing method to determine the production planning for the upcoming years? 21. A manufacturing company promises a bonus to its production managers if they can increase profit in their department. Since the selling price is fixed, the managers must determine a way to decrease the costs to manufacture each unit. Would the variable or absorption costing method be more helpful to the managers? 22. Use the information that follows to determine the contribution margin for the dog food and the South region. Pet Supply North South Sales volume (units): Dog food 15,000 19,200 Cat food 14,300 16,750 Sales price: Dog food $4.65 $4.50 Cat food $3.80 $3.95 Variable cost per unit: Dog food $2.80 $2.75 Cat food $1.15 $1.20