Question 8 - Consider a manufacturing process in which material costs are US$ 1 million, variable production costs $ 1.9 million and allocated overhead is $ 1.2 million. The current production is 1 million units. What would be total cost per unit if the plant doubled output? Overhead remains unchanged. SHOW CALCULATIONS can't be determined b. $2.65 c. $3.50 d. $3.00 a. Question 9 Continuing on the process in question 8, assuming that the 1 million units in Question 8 sell at US$ 5.00 a piece - and that in order to sell 2 million units, the selling price would have to be reduced to US$ 4.50 should the company add $ 1.2 million to its fixed costs to debottleneck and double capacity? SHOW CALCULATIONS a. b. Yes there is a profit gain of $500,000 No there is a profit loss of $100,000 It's impossible to determine with these data Yes there is a profit gain of $ 2,200,000 C. d