Shingle 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		$ 5,875		$ 4,700
2,000		5,875		8,460
3,000		9,400		8,700
4,000		9,400		11,600
5,000		9,400		14,500
6,000		9,400		17,400
7,000		9,400		20,300
8,000		9,400		23,200
9,000		11,750		34,427
10,000		11,750		41,125
11,000		11,750		51,700

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. 1.25.)

Variable costs per unit per unit

$

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Indicate the fixed cost within the relevant range.

Fixed cost

$

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