conscious customers, GES can sell the bulbs for $$9\mathrm{.}60$ each.

$($Click the icon to view the capacity information.$)$

Requirements

Calculate the inventoriable cost per unit using each level of capacity to compute fixed manufacturing cost per unit.

Calculate the production$-$volume variance using each level of capacity to compute the fixed manufacturing overhead allocation

rate and this year's production of $230,000$ bulbs.

Assuming GES has no beginning inventory, calculate operating income for GES using each type of capacity to compute fixed

manufacturing cost per unit and this year's sales of $220,000$ bulbs.

Requirement $1.$ Begin by determining the formula to calculate the inventoriable cost per unit.

Inventoriable Cost Per Unit