Question
[The following information applies to the questions displayed below.] Martinez Companys relevant range of production is 10,300 units to 15,300 units. When it produces and
[The following information applies to the questions displayed below.] |
Martinez Companys relevant range of production is 10,300 units to 15,300 units. When it produces and sells 12,800 units, its unit costs are as follows: |
Amount Per Unit | |||
Direct materials | $ | 5.60 | |
Direct labor | $ | 3.10 | |
Variable manufacturing overhead | $ | 1.40 | |
Fixed manufacturing overhead | $ | 3.60 | |
Fixed selling expense | $ | 2.60 | |
Fixed administrative expense | $ | 2.20 | |
Sales commissions | $ | 1.20 | |
Variable administrative expense | $ | 0.45 | |
13. | If the selling price is $21.60 per unit, what is the contribution margin per unit sold? (Round your answer to 2 decimal places.) |
14-a. | If 10,800 units are produced, what are the total amount of direct manufacturing costs incurred to support this level of production? |
14-b. | If 10,800 units are produced, what are the total amount of indirect manufacturing costs incurred to support this level of production? |
15. | What total incremental cost will Martinez incur if it increases production from 12,800 to 12,801 units? (Round your answer to 2 decimal places.) |
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