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Shamrock Motors is a division of Shamrock Products Corporation. The division manufactures and sells an electric switch used in a wide variety of applications.
Shamrock Motors is a division of Shamrock Products Corporation. The division manufactures and sells an electric switch used in a wide variety of applications. During the coming year, it expects to sell 220,000 units for $8.00 per unit. Kimber oung is the division manager. She is considering producing either 220,000 or 270,000 units during the period. Other information is as follows: Division Information for 2022 Beginning inventory Expected sales in units Selling price per unit Variable manufacturing cost per unit Fixed manufacturing cost (total) Fixed manufacturing overhead costs per unit Based on 220,000 units Based on 270,000 units Manufacturing cost per unit Based on 220,000 units Based on 270,000 units Variable selling and administrative expenses Fixed selling and administrative expenses (total) 0 220,000 $8.00 $2.70 $594,000 $2.70 per unit ($594,000+220,000) $2.20 per unit ($594,000 + 270,000) $5.40 per unit ($2.70 variable + $2.70 fixed) $4.90 per unit ($2.70 variable + $2.20 fixed) $0.50 per unit $11,900
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