What is the incremental manufacturing cost incurred if the company increases production from $20,000$ to $20,001$ units? What is the incremental cost incurred if the company increases production and sales from $20,000$ to $20,001$ units? Assume that Kubin Company produced $20,000$ units and expects to sell $19,800$ of them. If a new customer unexpectedly emerges and expresses interest in buying the $200$ extra units that have been produced by the company and that would otherwise remain unsold, what is the incremental manufacturing cost per unit incurred to sell these units to the customer? Assume that Kubin Company produced $20,000$ units and expects to sell $19,800$ of them. If a new customer unexpectedly emerges and expresses interest in buying the $200$ extra units that have been produced by the company and that would otherwise remain unsold, what incremental selling and administrative cost per unit is incurred to sell these units to the customer?

Average Cost

per Unit

Direct materials $$7\mathrm{.}00$

Direct labor $$4\mathrm{.}00$

Variable manufacturing overhead $$1\mathrm{.}50$

Fixed manufacturing overhead $$5\mathrm{.}00$

Fixed selling expense $$3\mathrm{.}50$

Fixed administrative expense $$2\mathrm{.}50$

Sales commissions $$1\mathrm{.}00$

Variable administrative expense $$0\mathrm{.}50$