Question
Question 1 Required information Skip to question [The following information applies to the questions displayed below.] Martinez Companys relevant range of production is 7,500 units
Question 1 Required information
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[The following information applies to the questions displayed below.]
Martinez Companys 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 | $ 6.40 |
Direct labor | $ 3.90 |
Variable manufacturing overhead | $ 1.40 |
Fixed manufacturing overhead | $ 4.00 |
Fixed selling expense | $ 3.40 |
Fixed administrative expense | $ 2.10 |
Sales commissions | $ 1.10 |
Variable administrative expense | $ 0.55 |
13. If the selling price is $22.40 per unit, what is the contribution margin per unit?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Question 2 Required information
Skip to question
[The following information applies to the questions displayed below.]
Martinez Companys 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 | $ 6.40 |
Direct labor | $ 3.90 |
Variable manufacturing overhead | $ 1.40 |
Fixed manufacturing overhead | $ 4.00 |
Fixed selling expense | $ 3.40 |
Fixed administrative expense | $ 2.10 |
Sales commissions | $ 1.10 |
Variable administrative expense | $ 0.55 |
14. If 12,000 units are produced, what are the total direct and indirect manufacturing costs incurred to support this level of production?
Note: Do not round intermediate calculations.
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