Question
martinez company's relevant range of production is 7500 unit to 12500 units. when it products and sells 10000 units, its average cost unit are as
martinez company's relevant range of production is 7500 unit to 12500 units. when it products and sells 10000 units, its average cost unit are as follow:
Ave cost per unit
direct materials $5.40
direct labor 2.90
variable manufacturing overhead 1.60
fixed manufacturing overhead 4.00
fixed selling expenses 2.40
fixed administrative expense 2.10
sales commissions 1.10
variable administrative expense 0.55
If 12500 unit are produced, what is the average fixed manufacturing cost per unit produced? (round your answer to 2 decimal places.)
If 12500 units are produced and sold what is the total amount of variable cost related to the units produced and sold. (do not round intermediate calculations)
If 8000 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level production?
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