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Question(s) / Instruction(s):

A lawnmower manufacturer computed a cost per unit of $53 by adding together last months direct labor, direct materials, and manufacturing overhead and dividing that total by the 10,000 units produced last month. (There was no beginning or ending inventories.) If 9,000 units are going to be manufactured this month, we would expect that the:
A.    cost per unit will remain the same.
B.    cost per unit will decrease.
C.    direction of change in unit costs cannot be determined.
D.    cost per unit will increase.

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