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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 | $ | 5.70 | |
Direct labor | $ | 3.20 | |
Variable manufacturing overhead | $ | 1.60 | |
Fixed manufacturing overhead | $ | 3.70 | |
Fixed selling expense | $ | 2.70 | |
Fixed administrative expense | $ | 2.10 | |
Sales commissions | $ | 1.10 | |
Variable administrative expense | $ | 0.55 | |
What total incremental cost will Martinez incur if it increases production from 11,000 to 11,001 units?(Round your answer to 2 decimal places.)
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