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Martinez Companys relevant range of production is 8,900 units to 13,900 units. When it produces and sells 11,400 units, its unit costs are as follows:
Martinez Companys relevant range of production is 8,900 units to 13,900 units. When it produces and sells 11,400 units, its unit costs are as follows: Amount Per Unit Direct materials $ 6.00 Direct labour $ 2.90 Variable manufacturing overhead $ 1.40 Fixed manufacturing overhead $ 4.00 Fixed selling expense $ 3.00 Fixed administrative expense $ 2.00 Sales commissions $ 1.00 Variable administrative expense $ 0.20 Required: If 13,900 units are sold, what is the total amount of variable costs related to the units sold
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