EXERCISE 1–13 Variable and Fixed Cost Behavior LO1–4 Munchak Company’s relevant range of production is between 9,000 and 11,000 units. Last month the company produced 10,000 units. Its total manufacturing cost per unit produced was

$70. At this level of activity the company’s variable manufacturing costs are 40% of its total manufacturing costs.

Required:
Assume that next month Munchak produces 10,050 units and that its cost behavior patterns remain unchanged. Label each of the following statements as true or false with respect to next month. Do not use a calculator to answer items 1 through 6. You can use a calculator to answer items 7 through 12. Record your answers by placing an X under the appropriate heading.