costing rather than variable costing. He argues that if absorption costing had been used, the company would probably have repa a profit for the month. Selected cost data relating to the product and to the first month of operations follow: Units Produced Units Sold Variable cost per unit: Direct Materials Direct Labour Variable manufacturing overhead Variable selling and administrative expenses 50,000 40,000 $1.00 $0.80 $0.20 $0.75 Complete the following: a. Calculate the profit/loss per unit using the current income statement. b. Compute the unit product cost under absorption costing using the bases of the number of units produced. c. Calculate the variance between the two methods. d. Analyze this variance. Explain why the result is different between the two costing methods. e. Make a recommendation using the concepts learned throughout the course and advise Andrea which costing method she should use and fully explain your rationale. f. If Andrea is using absorption costing and if she were to cut variable costs by 10%, what would the profit per unit be? What was the $ increase? g. If Andrea is using absorption costing and if she were to cut fixed costs by 10%, what would the profit per unit be? What was the $ increase? h. Which costs should Andrea look to reduce first and why?

costing rather than variable costing. He argues that if absorption costing had been used, the company would probably have rep a profit for the month. Selected cost data relating to the product and to the first month of operations follow: Complete the following: 7. Catculate the profit/loss per unit using the current income statement. b. Compute the unit product cost under absorption costing using the bases of the number of units produced. c. Calculate the variance between the two methods. d. Analyze this variance. Explain why the result is different between the two costing methods. e. Make a recommendation using the concepts learned throughout the course and advise Andrea which costing method she should use and fully explain your rationale. f. If Andrea is using absorption costing and if she were to cut variable costs by 10%, what would the profit per unit be? What Whis the 5 increase? 8. If Andrea is using absorption costing and if she were to cut fixed costs by 10%6, what would the profit per unit be? What was the S increase? h. Which costs should Andrea look to reduce first and why? costing rather than variable costing. He argues that if absorption costing had been used, the company would probably have rep a profit for the month. Selected cost data relating to the product and to the first month of operations follow: Complete the following: 7. Catculate the profit/loss per unit using the current income statement. b. Compute the unit product cost under absorption costing using the bases of the number of units produced. c. Calculate the variance between the two methods. d. Analyze this variance. Explain why the result is different between the two costing methods. e. Make a recommendation using the concepts learned throughout the course and advise Andrea which costing method she should use and fully explain your rationale. f. If Andrea is using absorption costing and if she were to cut variable costs by 10%, what would the profit per unit be? What Whis the 5 increase? 8. If Andrea is using absorption costing and if she were to cut fixed costs by 10%6, what would the profit per unit be? What was the S increase? h. Which costs should Andrea look to reduce first and why