Martinez Companys relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average cost per unit are as follows: Average Cost per unit ($)

Direct materials 6.00

Direct labour 3.50

Variable manufacturing overhead 1.50

Fixed manufacturing overhead 4.00

Fixed selling expense 3.00

Fixed administrative expense 2.00

Sales commission 1.00

Variable administrative expense 0.50

Required: a) What is the total amount of product costs incurred to make 10,000 units?

b) If 8,000 units are produced and sold, what is the variable cost per unit produced and sold?