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Glisan Corporation's relevant range of activity is 4,040 units to 8,040 units. When it produces and sells 6,040 units, its average costs per unit are

Glisan Corporation's relevant range of activity is 4,040 units to 8,040 units. When it produces and sells 6,040 units, its average costs per unit are as follows:

Average Cost per Unit
Direct materials $ 5.90
Direct labor $ 3.20
Variable manufacturing overhead $ 1.80
Fixed manufacturing overhead $ 4.70
Fixed selling expense $ .75
Fixed administrative expense $ .60
Sales commissions $ 1.50
Variable administrative expense $ 0.55

Required:

  1. For financial reporting purposes, what is the total amount of product costs incurred to make 6,040 units?
  2. For financial reporting purposes, what is the total amount of period costs incurred to sell 6,040 units?
  3. If 5,040 units are sold, what is the total amount of variable costs related to the units sold?
  4. If the selling price is $19.80 per unit, what is the contribution margin per unit sold?

Note: Round "Per unit" answer to 2 decimal places.

  1. What incremental manufacturing cost will the company incur if it increases production from 6,040 to 6,041 units?

Note: Round "Per unit" answer to 2 decimal places.

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