In order for mutually beneficial trade to occur between two otherwise isolated nations, each nation must be able to produce at least one good relatively cheaper than the other.
<h3>What does comparative advantage mean?</h3>
A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries. A country should specialise in the production of goods for which it has a comparative advantage. This is when trade can be mutually beneficial .
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Answer:
unitary product cost= $102
Explanation:
Giving the following information:
Manufacturing costs Direct materials per unit $60
Direct labor per unit $22
Variable overhead per unit $8
Fixed overhead for the year $528,000
Units produced= 44,000
The absorption costing method includes all costs related to production, both fixed and variable<u>. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead. </u>
Fi<u>rst, we need to calculate the unitary fixed overhead:</u>
Unitary fixed overhead= 528,000/44,000= $12
<u>Now, the unitary product cost:</u>
unitary product cost= 60 + 22 + 8 + 12
unitary product cost= $102