Question
Martinez Companys relevant range of production is 7,900 units to 12,900 units. When it produces and sells 10,400 units, its unit costs are as follows:
Martinez Companys relevant range of production is 7,900 units to 12,900 units. When it produces and sells 10,400 units, its unit costs are as follows: |
| Amount Per Unit |
| |||
Direct materials | $ | 6.60 |
|
| |
Direct labor | $ | 4.10 |
|
| |
Variable manufacturing overhead | $ | 1.50 |
|
| |
Fixed manufacturing overhead | $ | 4.60 |
|
| |
Fixed selling expense | $ | 3.60 |
|
| |
Fixed administrative expense | $ | 2.00 |
|
| |
Sales commissions | $ | 1.00 |
|
| |
Variable administrative expense | $ | 0.50 |
|
| |
9. | If 8,400 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production? | ||||
10. | If 12,900 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production? | ||||
13. | If the selling price is $22.60 per unit, what is the contribution margin per unit sold? (Round your answer to 2 decimal places.) | ||||
14-A. If 11,400 units are produced, what are the total amount of direct manufacturing costs incurred to
support this level of production?
14-B. If 11,400 units are produced, what are the total amount of indirect manufacturing costs incurred to
support this level of production?
15. | What total incremental cost will Martinez incur if it increases production from 10,400 to 10,401 units? (Round your answer to 2 decimal places.) |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started