A company's relevant range of production is 10,000 to 15,000 units. When it produces and sells 12,000 units, its unit costs are as follows: Amount per Direct labor Direct materials Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Unit $ 7.00 $ 4.00 $ 1.50 $ 5.00 $ 3.50 $ 2.00 $ 1.00 $ 0.50 Sales commissions Variable administrative expense What is the incremental cost incurred if the company increases production from 12,000 to 12,001 units? Multiple Choice $12.50 $17.50 $19.00 $24.50 A company's relevant range of production is 10,000 to 15,000 units. When it produces and sells 12,000 units, its unit costs are as follows: Amount per Unit $ 7.00 Direct materials Direct labor $ 4.00 Variable manufacturing overhead $ 1.50 Fixed manufacturing overhead $ 5.00 Fixed selling expense $ 3.50 Fixed administrative expense $ 2.00 Sales commissions $ 1.00 Variable administrative expense $ 0.50 If 11,000 units are produced, what is the total amount of direct manufacturing costs incurred to support this level of production? Multiple Choice $137,500 $148,500 $121,000 $192,500 Assume that a supermarket is considering replacing all of its frozen food freezers. The new freezers use less energy to operate than the existing freezers. Two costs that have been discussed by various employees with respect to this decision include (1) the utility cost (or energy cost) that would continue to be incurred if the company decides to keep its existing freezers, and (2) the price the company could charge to sell its existing freezers (also called the freezers' salvage value). Which of the following choices properly classifies each of these costs as being relevant or irrelevant in the decision to "keep or replace the freezers? Cost: Utility Cost Associated with Keeping the Existing Freezers Relevant Irrelevant A) No Yes B) Yes No c) Yes No D) No Yes Multiple Choice Choice A Choice B Choice C Choice D Cost: Salvage Value of the Relevant Existing Freezers Irrelevant Yes Yes No No