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Kozy Enterprises is considering manufacturing a new product. It projects the cost of direct materials and rent for a range of output as shown below.
Kozy 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 $5,000 $4,000 2,000 5,000 6,000 3,000 5,000 7,800 4,000 7,000 8,000 5,000 7,000 10,000 6,000 7,000 12,000 7,000 7,000 14,000 8,000 7,000 16,000 9,000 7,000 18,000 10,000 10,000 23,000 11,000 10,000 28,000 12,000 10,000 36,000 Determine the relevant range of activity for this product. Calculate the variable cost per unit within the relevant range. $ Indicate the fixed cost within the relevant range. $
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