Daniel is struggling with whether to use the practical capacity level or the normal capacity level for the company's budgeted quantity
of units. His company has always used the practical capacity level, but he believes the normal level would more accurately reflect a
realistic sales volume and production level of the company's travel bags. Daniel notes the following budgeted information: variable
manufacturing costs, $ per unit; fixedMOH costs, $; practical capacity, units; and normal capacity, units.
If actual production and sales both end at units, what would total product cost be per unit for each capacity level? Round answers
to decimal places, eg
If selling prices are of product cost, what selling prices would be set for each capacity level? Round answers to decimal places,
eg
