3. Martinez Company’s relevant range of production is 8,700 units to 13,700 units. When it produces...

Martinez Company’s relevant range of production is 8,700 units to 13,700 units. When it produces and sells 11,200 units, its unit costs are as follows:

	Amount Per Unit
Direct materials	$	5.20
Direct labor	$	2.70
Variable manufacturing overhead	$	1.50
Fixed manufacturing overhead	$	3.20
Fixed selling expense	$	2.20
Fixed administrative expense	$	2.00
Sales commissions	$	1.00
Variable administrative expense	$	0.50

If 9,200 units are sold, what is the variable cost per unit sold? (Round your answer to 2 decimal places.)

If 13,700 units are sold, what is the variable cost per unit sold?(Round your answer to 2 decimal places.)

5.	If 9,200 units are sold, what is the total amount of variable costs related to the units sold?

If 13,700 units are sold, what is the total amount of variable costs related to the units sold?

What total incremental cost will Martinez incur if it increases production from 11,200 to 11,201 units? (Round your answer to 2 decimal places.)

If 12,200 units are produced, what are the total amount of direct manufacturing costs incurred to support this level of production?

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Expert Solution

ekkarill92 answered 1 year ago

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