Sandhill Enterprises is considering manufacturing a new product. It projects the cost of direct materials and rent for a range of output as shown below.

Output in Units		Rent Expense		Direct Materials
1,000		$6,550		$5,240
2,000		6,550		6,900
3,000		10,480		6,900
4,000		10,480		9,200
5,000		10,480		11,500
6,000		10,480		13,800
7,000		10,480		16,100
8,000		10,480		18,400
9,000		13,100		38,383
10,000		13,100		45,850
11,000		13,100		57,640

Determine the relevant range of activity for this product.

The relevant range of activity for this product

1,000 2,0003,000 8,0009,000 11,000

units

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Calculate the variable costs per unit within the relevant range. (Round answer to 2 decimal places e.g. 2.25.)

Variable costs per unit per unit

$

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Indicate the fixed cost within the relevant range.

Fixed cost

$