Q29

The Colin Division of Oriole Company sells its product for $32.00 per unit. Variable costs per unit include: manufacturing. $14.20; and selling and administrative, $4.00. Fixed costs are: $240000 manufacturing overhead, and $58000 selling and administrative. There was no beginning inventory. Expected sales for next year are 40000 units. George Robinson, the manager of the Colin Division, is under pressure to improve the performance of the Division. As part of the planning process, he has to decide whether to produce 40000 units or 58000 units next year. What would the manufacturing cost per unit be under variable costing for each alternative? 40000 units 58000 units O $18.20 O $14.20 $20.20 O $19.00 $18.20 $14.20 $19.00 $20.20