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When Addams Corporation produces and sells 4,200 units, its average costs per unit are shown in the table below. The company's relevant range of activity
When Addams Corporation produces and sells 4,200 units, its average costs per unit are shown in the table below. The company's relevant range of activity is 3,000 to 7,000 units. Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $ 6.60 $ 3.40 $ 1.40 $ 4.50 $ 0.65 $ 0.50 $ 0.40 $ 0.40 Required: a. If 5,200 units are sold, what is the variable cost per unit sold? (Round "Per unit" answer to 2 decimal places.) b. If 5,200 units are sold, what is the total amount of variable costs related to the units sold? c. If 5,200 units are produced, what is the average fixed manufacturing cost per unit produced? (Round "Per unit" answer to 2 decimal places.) d. If 5,200 units are produced, what is the total amount of fixed manufacturing cost incurred? e. What incremental manufacturing cost will the company incur if it increases production from 4,200 to 4,201 units? (Round "Per unit" answer to 2 decimal places.) a. Variable cost per unit sold b. Total variable costs c. Average fixed manufacturing cost d. Total fixed manufacturing overhead cost e Incremental manufacturing cost
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