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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
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 | $ | 6.30 | |
Direct labor | $ | 3.80 | |
Variable manufacturing overhead | $ | 1.50 | |
Fixed manufacturing overhead | $ | 4.00 | |
Fixed selling expense | $ | 3.30 | |
Fixed administrative expense | $ | 2.00 | |
Sales commissions | $ | 1.00 | |
Variable administrative expense | $ | 0.50 | |
9. If 8,000 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?
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