Question
Martinez Companys relevant range of production is 8,300 units to 13,300 units. When it produces and sells 10,800 units, its unit costs are as follows:
Martinez Companys relevant range of production is 8,300 units to 13,300 units. When it produces and sells 10,800 units, its unit costs are as follows: |
| Amount Per Unit | ||
Direct materials | $ | 5.80 |
|
Direct labor | $ | 3.30 |
|
Variable manufacturing overhead | $ | 1.50 |
|
Fixed manufacturing overhead | $ | 3.80 |
|
Fixed selling expense | $ | 2.80 |
|
Fixed administrative expense | $ | 2.00 |
|
Sales commissions | $ | 1.00 |
|
Variable administrative expense | $ | 0.50 |
|
7) If 8,800 units are produced, what is the average fixed manufacturing cost per unit produced? (Round your answer to 2 decimal places.)
Average fixed manufacturing cost per unit produced
8) If 13,300 units are produced, what is the average fixed manufacturing cost per unit produced?
Average fixed manufacturing cost per unit produced
9) If 8,800 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production? Total amount of fixed manufacturing costs
10) If 13,300 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production? Total amount of fixed manufacturing costs
13) If the selling price is $21.80 per unit, what is the contribution margin per unit sold? Contribution margin per unit
14a) If 11,800 units are produced, what are the total amount of direct manufacturing costs incurred to support this level of production? Total direct manufacturing costs
14b) If 11,800 units are produced, what are the total amount of indirect manufacturing costs incurred to support this level of production? Total indirect manufacturing costs
What total incremental cost will Martinez incur if it increases production from 10,800 to 10,801 units? Incremental cost per unit produced
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