Question
Martinez Companys relevant range of production is 9,500 units to 14,500 units. When it produces and sells 12,000 units, its unit costs are as follows:
Martinez Companys relevant range of production is 9,500 units to 14,500 units. When it produces and sells 12,000 units, its unit costs are as follows: |
Amount Per Unit | ||||||
Direct materials | $ | 6.20 | ||||
Direct labor | $ | 3.70 | ||||
Variable manufacturing overhead | $ | 1.60 | ||||
Fixed manufacturing overhead | $ | 4.20 | ||||
Fixed selling expense | $ | 3.20 | ||||
Fixed administrative expense | $ | 2.20 | ||||
Sales commissions | $ | 1.20 | ||||
Variable administrative expense | $ | 0.45 | ||||
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5. | If 10,000 units are sold, what is the total amount of variable costs related to the units sold?
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