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Kubin Company's relevant range of production is 25,000 to 33,500 units. When it produces and sells 29,2 average costs per unit are as follows: Direct
Kubin Company's relevant range of production is 25,000 to 33,500 units. When it produces and sells 29,2 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 $ 8.50 $ 5.50 16 $ 3.00 $ 6.50 $ 5.00 $ 4.00 $ 2.50 $ 2.00 Required: 1. What is the incremental manufacturing cost incurred if the company increases production from 29,250 to 29,2 2. What is the incremental cost incurred if the company increases production and sales from 29,250 to 29,251 u 3. Assume that Kubin Company produced 29,250 units and expects to sell 28,900 of them. If a new customer un and expresses interest in buying the 350 extra units that have been produced by the company and that would o unsold, what is the incremental manufacturing cost per unit incurred to sell these units to the customer? 4. Assume that Kubin Company produced 29,250 units and expects to sell 28,900 of them. If a new customer un and expresses interest in buying the 350 extra units that have been produced by the company and that would o unsold, what incremental selling and administrative cost per unit is incurred to sell these units to the customer?
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