Question
Please tell me not only the answer but also how to solve it. Schonhardt Corporation's relevant range of activity is 2,500 units to 5,500 units.
Please tell me not only the answer but also how to solve it.
Schonhardt Corporation's relevant range of activity is 2,500 units to 5,500 units. When it produces and sells 4,000 units, its average costs per unit are as follows:
Average Cost per Unit Direct materials $ 7.60 Direct labor $ 2.90 Variable manufacturing overhead $ 1.65 Fixed manufacturing overhead $ 2.90 Fixed selling expense $ 0.95 Fixed administrative expense $ 0.65 Sales commissions $ 0.75 Variable administrative expense $ 0.65
If 4,500 units are produced, the total amount of fixed manufacturing cost incurred is closest to:
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