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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 $ 6.50
Direct labor $ 4.00
Variable manufacturing overhead $ 1.60
Fixed manufacturing overhead $ 4.00
Fixed selling expense $ 3.50
Fixed administrative expense $ 2.20
Sales commissions $ 1.20
Variable administrative expense $ 0.45

Required:

a. For financial accounting purposes, what is the total amount of product costs incurred to make 10,000 units? (Do not round intermediate calculations.)

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b. For financial accounting purposes, what is the total amount of period costs incurred to sell 10,000 units? (Do not round intermediate calculations.)

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c. If 8,000 units are produced and sold, what is the variable cost per unit produced and sold? (Round your answer to 2 decimal places.)

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d. If 12,500 units are produced and sold, what is the variable cost per unit produced and sold? (Round your answer to 2 decimal places.)

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e. If 8,000 units are produced and sold, what is the total amount of variable costs related to the units produced and sold? (Do not round intermediate calculations.)

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f. If 12,500 units are produced and sold, what is the total amount of variable costs related to the units produced and sold? (Do not round intermediate calculations.)

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g. If 8,000 units are produced, what is the average fixed manufacturing cost per unit produced?

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h. If 12,500 units are produced, what is the average fixed manufacturing cost per unit produced? (Round your answer to 2 decimal places.)

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i. If 8,000 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?

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j. If 12,500 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?

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Total product cost Total period cost Variable cost per unit sold Variable cost per unit sold Total variable cost Total variable cost Average fixed manufacturing cost per unit Average fixed manufacturing cost per unit Total fixed manufacturing cost Total fixed manufacturing cost

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