Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells
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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 as follows:
Average Cost Per UnitDirect materials$6.00Direct labor$3.50Variable manufacturing overhead$1.50Fixed manufacturing overhead$4.00Fixed selling expense$3.00Fixed administrative expense$2.00Sales commissions$1.00Variable administrative expense$0.50
10. If 12,500 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?
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