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Company A produces 10,000 units of a product in a month. The total manufacturing cost for the month includes direct materials cost of $50,000, direct
Company A produces 10,000 units of a product in a month. The total manufacturing cost for the month includes direct materials cost of $50,000, direct labor cost of $30,000, and manufacturing overhead cost of $20,000. Calculate the total manufacturing cost per unit. Explain how understanding per-unit costs aids in pricing decisions and profit analysis.
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