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[The following information applies to the questions displayed below.] Martinez Companys relevant range of production is 9,500 units to 14,500 units. When it produces and
[The following information applies to the questions displayed below.] |
Martinez Companys relevant range of production is 9,500 units to 14,500 units. When it produces and sells 12,000 units, its unit costs are as follows: |
Amount Per Unit | |||
Direct materials | $ | 6.80 | |
Direct labor | $ | 4.30 | |
Variable manufacturing overhead | $ | 1.60 | |
Fixed manufacturing overhead | $ | 4.80 | |
Fixed selling expense | $ | 3.80 | |
Fixed administrative expense | $ | 2.20 | |
Sales commissions | $ | 1.20 | |
Variable administrative expense | $ | 0.45 | |
15. | What total incremental cost will Martinez incur if it increases production from 12,000 to 12,001 units? (Round your answer to 2 decimal places.) |
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