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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 $ 6.40
Direct labor $ 3.90
Variable manufacturing overhead $ 1.40
Fixed manufacturing overhead $ 4.00
Fixed selling expense $ 3.40
Fixed administrative expense $ 2.10
Sales commissions $ 1.10
Variable administrative expense $ 0.55
9. If 8,000 units are produced, what is the total fixed manufacturing cost incurred to support this level of production?

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