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Martinez Companys relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its unit costs are as follows:

Martinez Companys relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its unit costs are as follows:

Amount Per Unit
Direct materials $ 5.20
Direct labor $ 2.70
Variable manufacturing overhead $ 1.50
Fixed manufacturing overhead $ 3.20
Fixed selling expense $ 2.20
Fixed administrative expense $ 2.00
Sales commissions $ 1.00
Variable administrative expense $

0.50

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