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
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 Unit Direct materials Direct labor Fixed manufacturing overhead Fixed selling expense Sales commissions $ 6.40 $ 3.90 Variable manufacturing overhead $ 1.40 $ 4.00 $ 3.40 Fixed administrative expense $ 2.10 $ 1.10 Variable administrative expense $ 0.55 15. What incremental manufacturing cost will Martinez incur if it increases production from 10,000 to 10,001 units? (Round your answer to 2 decimal places.)
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