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Oriole Enterprises is considering manufacturing a new product. It projects the cost of direct materials and rent for a range of output as shown below.
Oriole Enterprises is considering manufacturing a new product. It projects the cost of direct materials and rent for a range of output as shown below. Direct Output in Units Rent Expense Materials 1,000 $6,980 $5,584 2,000 6.980 7,500 3.000 11,168 7.500 4,000 11,168 10,000 5.000 11,168 12,500 6.000 11,168 15.000 7,000 11,168 17.500 8.000 11,168 20.000 9,000 13,960 40,903 10,000 13,960 48,860 11,000 13.960 61,424 Determine the relevant range of activity for this product. The relevant range of activity for this product units 1.000-2.000 3.000 - 8,000 9,000 - 11,000 eTextbook and Media Calculate the variable costs per unit within the relevant range. (Round answer to 2 decimal places eg. 2.25.) Variable costs per unit per unit $ eTextbook and Media Indicate the fixed cost within the relevant range. Fixed cost $
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