Fiori Corporation's relevant range of activity is 4,000 units to 7,500 units. When it produces and sells 5,750 units, its average costs per unit are as follows: Average Cost per Unit $ 6.80 $ 3.30 $ 1.85 $ 3.60 $ 1.15 $ 1.05 $ 1.60 $ 1.10 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense The incremental manufacturing cost that the company will incur if it increases production from 6,500 to 6,501 units is closest to:
Fiori Corporation's relevant range of activity is 4,000 units to 7,500 units. When it produces and sells 5,750 units, its average costs per unit are as follows: Average Cost per Unit $ 6.80 $ 3.30 $ 1.85 $ 3.60 $ 1.15 $ 1.05 $ 1.60 $ 1.10 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense The incremental manufacturing cost that the company will incur if it increases production from 6,500 to 6,501 units is closest to:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Fiori Corporation's relevant range of activity is 4,000 units to 7,500 units. When it produces and sells 5,750 units, its average costs per unit are as follows:
Average Cost
per Unit
$ 6.80
$ 3.30
$ 1.85
$ 3.60
$ 1.15
$ 1.05
$ 1.60
$ 1.10
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed selling expense
Fixed administrative expense
Sales commissions
Variable administrative expense
The incremental manufacturing cost that the company will incur if it increases production from 6,500 to 6,501 units is closest to:
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