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Martinez Company s relevant range of production is 1 5 , 0 0 0 units to 2 5 , 0 0 0 units. When it

Martinez Companys relevant range of production is 15,000 units to 25,000 units. When it produces and sells 20,000 units, its unit costs are as follows:
Amount
Per Unit
Direct materials $ 6.24
Direct labour $ 3.74
Variable manufacturing overhead $ 1.74
Fixed manufacturing overhead $ 5.24
Fixed selling expense $ 4.24
Fixed administrative expense $ 3.24
Sales commissions $ 1.74
Variable administrative expense $ 0.87
Required:
If 16,000 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?

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