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BDA1033 BBD2004 Management Accounting 1 Assignment May 2021 This assignment is an individual assignment. Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $6.00 Direct labor $3.50 Variable manufacturing overhead $1.50 Fixed manufacturing overhead $4.00 Fixed selling expense $3.00 Fixed administrative expense $2.00 Sales commissions $1.00 Variable administrative expense $0.50 Required: 9. If 8,000 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production? (0.5 marks) 10. If 12,500 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production? (0.5 marks) 11. If 8,000 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? What is this total amount expressed on a per unit basis? (6 marks) 12. If 12,500 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? What is this total amount expressed on a per unit basis? (6 marks) 13. If the selling price is $22 per unit, what is the contribution margin per unit sold? (2 marks) 14. If 11,000 units are produced, what are the total amounts of direct and indirect manufacturing costs incurred to support this level of production? (8 marks) 15. What total incremental cost will Martinez incur if it increases production from 10,000 to 10,001 units? (6 marks) You are required to comment and explain to the manage on the rationale behind the calculations for items 1, 2 and 15. [Total 65 marks]