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Required information [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

Required information

[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 $ 6.90
Direct labor $ 4.40
Variable manufacturing overhead $ 1.50
Fixed manufacturing overhead $ 4.00
Fixed selling expense $ 3.90
Fixed administrative expense $ 2.00
Sales commissions $ 1.00
Variable administrative expense $ 0.50

13. If the selling price is $22.90 per unit, what is the contribution margin per unit? (Do not round intermediate calculations. Round your answer to 2 decimal places

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14. If 11,000 units are produced, what are the total amounts of direct and indirect manufacturing costs incurred to support this level of production? (Do not round intermediate calculations.)

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15. What incremental manufacturing cost will Martinez incur if it increases production from 10,000 to 10,001 units? (Round your answer to 2 decimal places.)

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Contribution margin per unit Total direct manufacturing cost Incremental cost per unit produced

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