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[The following information applies to the questions displayed below.] Martinez Companys relevant range of production is 7,500 units to 12,500 units. When it produces and

[The following information applies to the questions displayed below.]

Martinez Companys relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows:

Average Cost per Unit
Direct materials $ 6.10
Direct labor $ 3.60
Variable manufacturing overhead $ 1.40
Fixed manufacturing overhead $ 4.00
Fixed selling expense $ 3.10
Fixed administrative expense $ 2.10
Sales commissions $ 1.10
Variable administrative expense $ 0.55

15. What incremental manufacturing cost will Martinez incur if it increases production from 10,000 to 10,001 units?

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