Ebbinghaus Company produces basketballs. In 2013, 100,000 units are produced and 80,000 units sold. Variable costs per unit are $10 and fixed manufacturing costs are $200,000. The per unit cost for both absorption and variable costing are as follows:
|
Absorption |
||
|
costing |
costing |
|
|
$8 |
$10 |
|
|
$10 |
$18 |
|
|
$12 |
$18 |
|
|
$12 |
$10 |