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what happens to cost as output increases
Your overhead cost per unit is your overhead costs divided by the number of units produced. [ Your overhead never changes, as it is the cost regardless of production. Say you made 1 item with $100 overhead, your unit overhead cost would be $100 per item If you made 100 items with $100 overhead, your unit cost would be $1 per item. Thus, the more you make, the lower your overhead/item ]
Expert answered|jher000|Points 7630|
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Asked 9/20/2012 12:38:25 PM
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