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If a predetermined overhead rate is not employed and the volume of production is increased over the level planned the cost per unit would be expected to?
Wiki User
∙ 16y ago
It would be expected to decrease. Due to the spreading out of cost over a larger production level. The confusion comes when thinking of cost verses sale price. Although cost may decrease the consumer may not see a decrease in the price and thus the manufacture has a higher gross margin per unit.
Wiki User
∙ 16y ago
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