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Schonhardt Corporation's relevant range of activity is 4,100 units to 9,500 units. When it produces and sells 6,800 units, its average costs per unit

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Schonhardt Corporation's relevant range of activity is 4,100 units to 9,500 units. When it produces and sells 6,800 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 7.40 Direct labor $ 3.80 Variable manufacturing overhead $ 1.45 Fixed manufacturing overhead $ 2.50 Fixed selling expense $ 1.05 Fixed administrative expense $ 0.75 Sales commissions Variable administrative expense If 8,500 units are produced, the total amount of fixed manufacturing cost incurred is closest to: $ 0.85 $ 0.75

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