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1-15 Martinez Companys relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit
1-15
Martinez Companys relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows:
Average Cost per Unit | |||
Direct materials | $ | 5.20 | |
Direct labor | $ | 2.70 | |
Variable manufacturing overhead | $ | 1.50 | |
Fixed manufacturing overhead | $ | 4.00 | |
Fixed selling expense | $ | 2.20 | |
Fixed administrative expense | $ | 2.00 | |
Sales commissions | $ | 1.00 | |
Variable administrative expense | $ | 0.50 | |
What incremental manufacturing cost will Martinez incur if it increases production from 10,000 to 10,001 units? (Round your answer to 2 decimal places.)
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