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A company's relevant range of activity is 4,500 units to 8,500 units. When it produces and sells 6,500 units, its average costs per unit
A company's relevant range of activity is 4,500 units to 8,500 units. When it produces and sells 6,500 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 7.90 Direct labor $ 3.50 Variable manufacturing overhead $ 1.95 Fixed manufacturing overhead $ 3.60 Fixed selling expense $ 1.25 Fixed administrative expense $ 0.95 Sales commissions $ 1.05 $ 0.95 Variable administrative expense If 7,500 units are produced, the total amount of fixed manufacturing cost incurred is closest to:
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