Question
Sandhill Enterprises is considering manufacturing a new product. It projects the cost of direct materials and rent for a range of output quantities as
Sandhill Enterprises is considering manufacturing a new product. It projects the cost of direct materials and rent for a range of output quantities as shown below Output in Units Rent Expense Direct Materials 1,000 $6,000 $4,100 2,000 6.000 6,200 3,000 6.000 8,100 4,000 8,000 8,400 5,000 8,000 10,500 6,000 8,000 12.600 7,000 8.000 14,700 8,000 8,000 16,800 9,000 8,000 18,900 10,000 11,000 24,000 11,000 11,000 29,150 (b) 7,000 8.000 14,700 8,000 8,000 16.800 9,000 8.000 18,900 10,000 11,000 24,000 11,000 11,000 29,150 12,000 11,000 37.200 Your answer has been saved. See score details after the due date. Determine the relevant range of activity for this product. Relevant range 4000 to 1000 Your answer has been saved. See score details after the due date Determine the relevant range of activity for this product Relevant range 4000 to 9000 (c) Calculate the variable cost per unit within the relevant range. (Round answer to 2 decimal places, eg 2.22) Variable cost $ per unit
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