Flori Corporation's relevant range of activity is 3,100 units to 6,500 units. When it produces and sells 4,800 units, its average costs per unit are as follows: Average Coat per Unit Direct materials Direct labor Variable manuf acturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense 6.70 $ 3.10 $1.75 $ 3.00 $ 1.05 $ 0.95 $ 1.40 $ 0.90 Sales commissions Variable administrative expense The incremental manufacturing cost that the company will incur if it increases production from 5,500 to 5,501 units is closest to