Crane Enterprises is considering manufacturing a new product. It projects the cost of direct materials and rent for a range of output as shown below.

Output in Units Rent Expense Direct Materials

1,000$ 7,235 $5,788

2,000 7,235 8,700

3,000 11,576 8,700

4,000 11,576 11,600

5,000 11,576 14,500

6,000 11,576 17,400

7,000 11,576 20,300

8,000 11,576 23,200

9,000 14,470 42,397

10,000 14,470 50,645

11,000 14,470 63,668

(b)

Determine the relevant range of activity for this product.

The relevant range of activity for this product $ unit

(c)

Calculate the variable costs per unit within the relevant range.(Round answer to 2 decimal places e.g. 2.25.)

Variable costs per unitper unit$

(d)

Indicate the fixed cost within the relevant range.

Fixed cost $