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Pharoah Enterprises is considering manufacturing a new product. It projects the cost of direct materials and rent for a range of output as shown below.
Pharoah Enterprises is considering manufacturing a new product. It projects the cost of direct materials and rent for a range of output as shown below. Output in Units 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 11,000 Rent Expense $6,940 6,940 11,104 11,104 11,104 11,104 11,104 11,104 13,880 13,880 13,880 Direct Materials $5,552 6,000 6,000 8,000 10,000 12,000 14,000 16,000 40,668 48,580 61,072 Determine the relevant range of activity for this product. The relevant range of activity for this product units Calculate the variable costs per unit within the relevant range. (Round answer to 2 decimal places e.g. 2.25.) Variable costs per unit per unit & Indicate the fixed cost within the relevant range. Fixed cost
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