Ebbinghaus Company produces basketballs. In 2013, 100,000 units are produced and 80,000 units sold.

Ebbinghaus Company produces basketballs. In 2013, 100,000 units are produced and 80,000 units sold. Variable costs per unit are $10 and fixed manufacturing costs are $200,000. The per unit cost for both absorption and variable costing are as follows:

Absorption

costing

costing

$8

$10

$10

$18

$12

$18

$12

$10