Direct labor$7.25per unit Direct material$8.00per unit Variable overhead$5.50per unit Fixed overhead ($67,500/9,000 units)$7.50per unit Total production cost$28.25per unit Compute the total product cost per unit under absorption costing if 25,000 units had been produced. Multiple Choice $28.25 $23.45 $26.25 $20.75

Phoenix guitars is interested in pursuing backward integration to take greater ownership of the extraction of raw materials and production of components used in its signature line of guitars. although this approach would lower the overall cost of producing a guitar, the costs associated with producing electronic pickupsfor sound amplification are far greater than those associated with sourcing pickups from a reliable supplier. which of the following approaches is likely to produce superior results? a) invest in vertical integration despite the cost of producing pickups.b) abandon the idea of vertical integration entirely.c) pursue taper integration.d) introduce a budget line of guitars to diversify the firm's offerings.