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 | |
1.For financial accounting purposes, what is the total amount of product costs incurred to make 10,400 units? 2.For financial accounting purposes, what is the total amount of period costs incurred to sell 10,400 units? 3. If 8,400 units are sold, what is the variable cost per unit sold? (Round your answer to 2 decimal places.) 4. If 12,900 units are sold, what is the variable cost per unit sold? (Round your answer to 2 decimal places.) 5. If 8,400 units are sold, what is the total amount of variable costs related to the units sold? 6. If 12,900 units are sold, what is the total amount of variable costs related to the units sold? 7. 7. If 8,400 units are produced, what is the average fixed manufacturing cost per unit produced? 8. If 12,900 units are produced, what is the average fixed manufacturing cost per unit produced? 9. What total incremental cost will Martinez incur if it increases production from 10,400 to 10,401 units? 10.If the selling price is $22.60 per unit, what is the contribution margin per unit sold?
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