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That’s very long sorry I don’t know the answer
Answer:
The correct option is C
Explanation:
Sunk cost is the cost which is incurred by an entity but cannot be recovered. It is considered when making a decision whether to continue investing in the ongoing project or proposal as it is unrecoverable.
Therefore, it is not considered in the investment proposal, as these are already been incurred and should not affect the investment decision of the business.
Answer:
c. $229
Explanation:
To compute the total absorption cost per unit we do the following,
Absorption of fixed costs = Fixed costs / units produced
Absorption cost = 200,000 / 4000 = $50/unit
Total cost of each individual unit = 99 + 55 + 25 + 50 = $229
This includes direct material, direct labor, manufacturing overhead and the fixed absorption cost.
With absorption costing we take all the goods produced in a period as denominator for the Fixed costs.
Hope that helps.