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Martinez Company s relevant range of production is 7 , 5 0 0 units to 1 2 , 5 0 0 units. When it produces

Martinez Companys relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows:
Average Cost Per Unit
Direct materials $ 5.50
Direct labor $ 3.00
Variable manufacturing overhead $ 1.50
Fixed manufacturing overhead $ 4.00
Fixed selling expense $ 2.50
Fixed administrative expense $ 2.00
Sales commissions $ 1.00
Variable administrative expense $ 0.50
8. If 12,500 units, what is the average fixed manufacturing cost per unit produced

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