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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
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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 UnitDirect materials$ 6.00Direct labor$ 3.50Variable manufacturing overhead$ 1.50Fixed manufacturing overhead$ 4.00Fixed selling expense$ 3.00Fixed administrative expense$ 2.00Sales commissions$ 1.00Variable 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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