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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 Company's 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:
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
$
6.00
$
3.50
$
1.50
$
4.00
$
3.00
$
2.00
$
1.00
$
0.50
Required:
1
.
For financial accounting purposes, what is the total amount of product costs incurred to make
10
,
000
units?
2
.
For financial accounting purposes, what is the total amount of period costs incurred to sell
10
,
000
units?
3
.
If
8
,
000
units are produced and sold, what is the variable cost per unit produced and sold?
4
.
If
12
,
500
units are produced and sold, what is the variable cost per unit produced and sold?
5
.
If
8
,
000
units are produced and sold, what is the total amount of variable costs related to the units produced and sold?
6
.
If
12
,
500
units are produced and sold, what is the total amount of variable costs related to the units produced and sold?
7
.
If
8
,
000
units are produced, what is the average fixed manufacturing cost per unit produced?
8
.
If
12
,
500
units are produced, what is the average fixed manufacturing cost per unit produced?
9
.
If
8
,
000
units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?
10
.
If
12
,
500
units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?
11
.
If
8
,
000
units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? What is this total amount expressed on a per unit basis?
12
.
If
12
,
500
units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? What is this total amount expressed on a per unit basis?
13
.
If the selling price is $
22
per unit, what is the contribution margin per unit?
14
.
If
11
,
000
units are produced, what are the total amounts of direct and indirect manufacturing costs incurred to support this level of production?
15
.
What incremental manufacturing cost will Martinez incur if it increases production from
10
,
000
to
10
,
001
units?
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