3. If 8,000 units are produced and sold, what is the variable cost per unit produced and sold? Note: Round your answer to 2 decimal places.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Required information
[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:
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
$5.80
$3.30
$ 1.50
$ 4.00
Variable cost per unit sold
$ 2.80
$ 2.00
$ 1.00
$ 0.50
3. If 8,000 units are produced and sold, what is the variable cost per unit produced and sold?
Note: Round your answer to 2 decimal places.
Transcribed Image Text:Required information [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: 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 $5.80 $3.30 $ 1.50 $ 4.00 Variable cost per unit sold $ 2.80 $ 2.00 $ 1.00 $ 0.50 3. If 8,000 units are produced and sold, what is the variable cost per unit produced and sold? Note: Round your answer to 2 decimal places.
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