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Under absorption costing, a company had the following per unit costs when 10,000 units were...

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Accounting

Under absorption costing, a company had the following per unit costs when 10,000 units were produced.

Direct labor $2

Direct material $3

Variable OH $4

Total variable Cost $9

Fixed OH (50000/10000 units) 5

Total production cost per unit $14

Compute the companys 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 than can currently be sold?

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