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Hi John,
Question 99 explained (1) is false because a price in excess of full cost per unit will not make sure that a company make a profit, it also depends on whether or not fixed cost are covered by the sales revenue. I got this wrong because I thought “Full cost per unit” means all production costs including both variable and fixed cost. is it right?
Thank you in advance!!!I just watched your lecture again, I think because we don’t know if the real sales volume is as budgeted. Besides, From your note, full cost also includes non-production costs so please ignore my question above.
Thank you!!!
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