Question
Martinez Companys relevant range of production is 8,500 units to 13,500 units. When it produces and sells 11,000 units, its unit costs are as follows:
Martinez Companys relevant range of production is 8,500 units to 13,500 units. When it produces and sells 11,000 units, its unit costs are as follows:
Amount Per Unit | |||
Direct materials | $ | 6.40 | |
Direct labor | $ | 3.90 | |
Variable manufacturing overhead | $ | 1.40 | |
Fixed manufacturing overhead | $ | 4.40 | |
Fixed selling expense | $ | 3.40 | |
Fixed administrative expense | $ | 2.10 | |
Sales commissions | $ | 1.10 | |
Variable administrative expense | $ | 0.55 | |
3) If 9,000 units are sold, what is the variable cost per unit sold? (Round your answer to 2 decimal places.)
4) If 13,000 units are sold, what is the variable cost per unit sold? (Round your answer to 2 decimal places.)
5) If 9,000 units are sold, what is the total amount of variable costs related to the units sold? 6) If 13,000 units are sold, what is the total amount of variable costs related to the units sold?
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