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15 Martinez Companys relevant range of production is 9,500 units to 14,500 units. When it produces and sells 12,000 units, its unit costs are as
15 Martinez Companys relevant range of production is 9,500 units to 14,500 units. When it produces and sells 12,000 units, its unit costs are as follows:
Amount Per Unit | ||
Direct materials | $ | 5.30 |
Direct labor | $ | 2.80 |
Variable manufacturing overhead | $ | 1.40 |
Fixed manufacturing overhead | $ | 3.30 |
Fixed selling expense | $ | 2.30 |
Fixed administrative expense | $ | 2.20 |
Sales commissions | $ | 1.20 |
Variable administrative expense | $ | 0.45 |
Required: |
What total incremental manufacturing cost will Martinez incur if it increases production from 12,000 to 12,001 units? (Round your answer to 2 decimal places.) |
Incremental manufacturing cost per unit | $ |
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