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Sunland Enterprises is considering manufacturing a new product. It projects the cost of direct materials and rent for a range of output as follows.
Sunland Enterprises is considering manufacturing a new product. It projects the cost of direct materials and rent for a range of output as follows. Output Rent Direct in Units Cost Materials 1,000 $5,335 $4,270 2,000 5,335 8,100 3,000 8,536 8,100 4,000 8,536 10,800 5,000 8,536 13,500 6,000 8,536 16,200 7,000 8,536 18,900 8,000 8,536 21,600 9,000 10,670 31,263 10,000 10,670 37,345 11,000 10,670 46,948 Determine the relevant range of activity for this product based on the cost behavior of each input. The relevant range of activity for this product units. Calculate the unit variable costs within the relevant range. (Round answer to 2 decimal places e.g. 2.25.) Unit variable cost for direct materials $ per unit Indicate the fixed cost within the relevant range. Fixed cost $
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