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Kubin Company's relevant range of production is 10,000 to 12,000 units. When it produces and sells 11,000 units, its average costs per unit are as
Kubin Company's relevant range of production is 10,000 to 12,000 units. When it produces and sells 11,000 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $ 7.10 $ 4.10 $ 1.60 $ 5.10 $ 3.60 $ 2.60 $ 1.10 $ 0.60 Required: 1. What is the incremental manufacturing cost incurred if the company increases production from 11,000 to 11,001 units? 2. What is the incremental cost incurred if the company increases production and sales from 11,000 to 11,001 units? 3. Assume that Kubin Company produced 11,000 units and expects to sell 10,790 of them. If a new customer unexpectedly emerges and expresses interest in buying the 210 extra units that have been produced by the company and that would otherwise remain unsold, what is the incremental manufacturing cost per unit incurred to sell these units to the customer? 4. Assume that Kubin Company produced 11,000 units and expects to sell 10,790 of them. If a new customer unexpectedly emerges and expresses interest in buying the 210 extra units that have been produced by the company and that would otherwise remain unsold, what incremental selling and administrative cost per unit is incurred to sell these units to the customer? Required 1 Required 2 Required 3 Required 4 What is the incremental manufacturing cost incurred if the company increases production from 11,000 to 11,001 units? (Round your answer to 2 decimal places.) Total incremental manufacturing cost Required 1 Required 2 Required 3 Required 4 What is the incremental cost incurred if the company increases production and sales from 11,000 to 11,001 units? (Round your answer to 2 decimal places.) Total incremental cost Required 1 Required 2 Required 3 Required 4 Assume that Kubin Company produced 11,000 units and expects to sell 10,790 of them. If a new customer unexpectedly emerges and expresses interest in buying the 210 extra units that have been produced by the company and that would otherwise remain unsold, what is the incremental manufacturing cost per unit incurred to sell these units to the customer? Incremental manufacturing cost Required 1 Required 2 Required 3 Required 4 Assume that Kubin Company produced 11,000 units and expects to sell 10,790 of them. If a new customer unexpectedly emerges and expresses interest in buying the 210 extra units that have been produced by the company and that would otherwise remain unsold, what incremental selling and administrative cost per unit is incurred to sell these units to the customer? (Round your answer to 2 decimal places.) Show less Total incremental selling and administrative cost per unit
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