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Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Average Cost Per Unit $ 6.80 $ 4.30 $ 1.60 $ 4.00 $ 3.80 $ 2.20 $ 1.20 $ 0.45 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense pundational 1-15 (Algo) What Incremental manufacturing cost will Martinez Incur if It increases production from 10,000 to 10,001 units? (Round your answer

Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Average Cost Per Unit $ 6.80 $ 4.30 $ 1.60 $ 4.00 $ 3.80 $ 2.20 $ 1.20 $ 0.45 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense pundational 1-15 (Algo) What Incremental manufacturing cost will Martinez Incur if It increases production from 10,000 to 10,001 units? (Round your answer

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Requlred Informatlon The Foundational 15 (Algo) [LO1-1, LO1-2, LO1-3, LO1-4, LO1-5, L01-6] [The following Information applies to the questions displayed below.] Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Average Cost Per Unit $ 6.80 $ 4.30 $ 1.60 $ 4.00 $ 3.80 $ 2.20 $ 1.20 $ 0.45 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Foundational 1-15 (Algo) 15. What Incremental manufacturing cost will Martinez incur if It increases production from 10,000 to 10,001 units? (Round your answer to 2 decimal places.) * Answer is complete but not entirely correct. Incremental cost per unit produced $ 14.35
Transcribed Image Text:Requlred Informatlon The Foundational 15 (Algo) [LO1-1, LO1-2, LO1-3, LO1-4, LO1-5, L01-6] [The following Information applies to the questions displayed below.] Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Average Cost Per Unit $ 6.80 $ 4.30 $ 1.60 $ 4.00 $ 3.80 $ 2.20 $ 1.20 $ 0.45 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Foundational 1-15 (Algo) 15. What Incremental manufacturing cost will Martinez incur if It increases production from 10,000 to 10,001 units? (Round your answer to 2 decimal places.) * Answer is complete but not entirely correct. Incremental cost per unit produced $ 14.35
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