E. Gower expects to manufacture and sell 80,000 units in 2010. 1. Prepare a schedule of variable,fixed, and total manufacturing costs for each account category in 2010. Estimate total manufacturing costs for 2010. 2. Calculate Gower”s total manufacturing cost per unit in 2009, and estimate total manufacturing cost per unit in 2010. 3. How can you obtain better estimates of fixed and variable costs? Why would these better estimates be useful to Gower?

 

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