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Sandhill Enterprises is considering manufacturing a new product. It projects the cost of direct materials and rent for a range of output as follows Output
Sandhill Enterprises is considering manufacturing a new product. It projects the cost of direct materials and rent for a range of output as follows Output in Units Rent Cost Direct Materials 1,000 $5,730 $4,580 2.000 5,730 7,800 3,000 9.168 7,800 4,000 9.168 10,400 5.000 9.168 13,000 6,000 9.168 15,600 7,000 9.168 18,200 8,000 9.168 20,800 9,000 11,460 33,578 10,000 11.460 40,110 11,000 11,460 50,424 b (b) Your answer is correct. Determine the relevant range of activity for this product based on the cost behavior of each input. The relevant range of activity for this product 3.000 - 3,000 units. e Textbook and Media Attempts: 2 of 3 used (c) c Your answer is incorrect. Calculate the unit variable costs within the relevant range. (Round answer to 2 decimal places eg. 2.25.) Unit variable cost for direct materials $ $ 1 per unit Indicate the fixed cost within the relevant range. $ Fixed cost Image for Shingle Enterprises is considering manufacturing a new product. It projects the cost of direct materials andr Show transcribed image text
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