Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Martinez Companys relevant range of production is 9,100 units to 14,100 units. When it produces and sells 11,600 units, its unit costs are as follows:

Martinez Companys relevant range of production is 9,100 units to 14,100 units. When it produces and sells 11,600 units, its unit costs are as follows:

Amount Per Unit
Direct materials $ 7.00
Direct labor $ 4.50
Variable manufacturing overhead $ 1.40
Fixed manufacturing overhead $ 5.00
Fixed selling expense $ 4.00
Fixed administrative expense $ 2.10
Sales commissions $ 1.10
Variable administrative expense $ 0.55
8.

If 14,100 units are produced, what is the average fixed manufacturing cost per unit produced? (Round your answer to 2 decimal places.)

9.

If 9,600 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?

10.

If 14,100 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?

11-a.

If 9,600 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production?

11-b.

If 9,600 units are produced, what is the total amount of manufacturing overhead cost expressed on a per unit basis? (Round your answer to 2 decimal places.)

12-a.

If 14,100 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production?

12-b.

If 14,100 units are produced, what is the total amount of manufacturing overhead cost expressed on a per unit basis? (Round your answer to 2 decimal places.)

13.

If the selling price is $23.00 per unit, what is the contribution margin per unit sold? (Round your answer to 2 decimal places.)

14-a.

If 12,600 units are produced, what are the total amount of direct manufacturing costs incurred to support this level of production?

14-b.

If 12,600 units are produced, what are the total amount of indirect manufacturing costs incurred to support this level of production?

15.

What total incremental cost will Martinez incur if it increases production from 11,600 to 11,601 units? (Round your answer to 2 decimal places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Money Markets Handbook A Practitioners Guide

Authors: Moorad Choudhry

1st Edition

0470821507, 978-0470821503

More Books

Students also viewed these Finance questions