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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 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. Direct Materials Output in Units Rent Expense 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 10,000 11,000 24,000 11.000 11,000 29.150 12,000 11,000 37.200 (b) Determine the relevant range of activity for this product. Relevant range to
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