Beginning inventory Expected sales in units Selling price per unit Variable manufacturing cost per unit Fixed manufacturing overhead cost (total) Fixed manufacturing overhead costs per unit Based on 20,000 units Based on 30,000 units Total manufacturing cost per unit Based on 20,000 units Based on 30,000 units Variable selling and administrative expenses per unit Fixed selling and administrative expenses 0 20,000 $15 $6 $60,000 $3 per unit ($60,000 20,000 units) 30,000 units) $2 per unit ($60,000 $9 per unit ($6 variable +$3 fixed) $8 per unit ($6 variable + $2 fixed) $1 $15,000 Decision: Produce 20,000 or 30,000 units