Question
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
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:
Average Cost Per UnitDirect materials$5.90Direct labor$3.40Variable manufacturing overhead$1.60Fixed manufacturing overhead$4.00Fixed selling expense$2.90Fixed administrative expense$2.20Sales commissions$1.20Variable administrative expense$0.45
Foundational 1-4
4. If12,500 units are produced and sold, what is the variable cost per unit produced and sold?(Round your answer to 2 decimal places.)
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