Under absorption costing a company had the following per unit costs when 10.000 units were produced.

direct labor $2.

direct material $3

variable overhead $4

TOTAL VARIABLE COST $9

fixed overhead(50,000/10,000 units)$5

TOTAL PRODUCTION COST PER UNIT $14

compute the company's total production cost per unit if 25,000 units had been produced.

why might a manager of a company using absorption costing produce more units then can currently be sold?

4