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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 average costs per unit are
Martinez Companys 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$5.80Direct labor$3.30Variable manufacturing overhead$1.50Fixed manufacturing overhead$4.00Fixed selling expense$2.80Fixed administrative expense$2.00Sales commissions$1.00Variable administrative expense$0.50Foundational 1-4 (Algo)
4. If 12,500 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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