Problem 2

Shingle 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 Rent output in Units Expense Material 1,000 5,290 4,232 2,000 5,290 7,618 3,000 7,200 8,464 8,464 9,600 4,000 8,464 12,000 5,000 6,000 8,464 14,400 7,000 8,464 16,800 8,464 19,200 8,000 9,000 10,580 30,999 10,000 10,580 37,030 11,000 10,580 46,552 Determine the relevant range of activity for this product. The relevant range of activity for this product An units Calculate the variable costs per unit within the relevant range. (Round answer to 2 decimal places, e.g. 1.25.) Variable costs per unit per unit LINK TO TEXT Indicate the fixed cost within the relevant range. Fixed cost Click if you would like to Show Work for this question Open Show Work