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RevampScamp turns regular Scamp trailers (very lightweight camping trailers) into fancy, high-end travel trailers. RevampScamp's relevant range of production is 120 - 240 units. When
RevampScamp turns regular Scamp trailers (very lightweight camping trailers) into fancy, high-end travel trailers. RevampScamp's relevant range of production is 120 - 240 units. When it produces and sells 140 units, its average costs per unit are as follows: Average Cost Per Unit Direct Materials $20,000 Direct Labor $3,000 Variable Manufacturing Overhead $2,000 Fixed Manufacturing Overhead $1,000 Fixed Selling Expense $500 Fixed Administrative Expense $250 Sales Commissions $750 Variable Administrative Expense $200 Assume RevampScamp has produced 220 units and expects to sell 205 of them. If a new customer expresses interest in buying 5 extra units that have been produced and would otherwise remain unsold, what is the total incremental cost incurred to sell these units to the customer? Multiple Choice $13,300 $3,800 $389,250 $14,250
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