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Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as

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Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 5.40 Direct labor $ 3.55 Variable manufacturing overhead $ 1.70 Fixed manufacturing overhead 3.00 Fixed selling expense 0.60 Fixed administrative expense Sales commissions $ 1.00 Variable administrative expense $ 0.40 $ 0.40 1f 5,000 units are produced, the average fixed manufacturing cost per unit produced is closest to: Select one: a. $2.40 b. $3.00 C. $3.75 d. 52.70

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