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		$5,585		$4,468
2,000		5,585		7,500
3,000		8,936		7,500
4,000		8,936		10,000
5,000		8,936		12,500
6,000		8,936		15,000
7,000		8,936		17,500
8,000		8,936		20,000
9,000		11,170		32,728
10,000		11,170		39,095
11,000		11,170		49,148

Determine the relevant range of activity for this product.

The relevant range of activity for this product

Choose your answer here 1,000 2,0003,000 8,0009,000 11,000

units

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

Variable costs per unit per unit

$Type your answer here

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Indicate the fixed cost within the relevant range.

Fixed cost

$Type your answer here