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Schonhardt Corporation's relevant range of activity is 3,500 units to 8,500 units. When it produces and sells 6,000 units, its average costs per unit are
Schonhardt Corporation's relevant range of activity is 3,500 units to 8,500 units. When it produces and sells 6,000 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $ 7.30 $ 3.60 $ 1.35 $ 3.30 $ 0.95 $ 0.65 $ 0.75 $ 0.65 If 7,500 units are produced, the total amount of fixed manufacturing cost incurred is closest to: Multiple Choice $29,400 $25,500 $19,800 O $23.100
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