Martinez Company's relevant range ofproduction is 7,500 units to 12,500 units.When it produces and sells 10,000 units, itsaverage costs per unit are as follows:Average Costper UnitDirect materials$ 6.10Direct labor$ 3.60Variable manufacturingoverhead$ 1.40Fixed manufacturingoverhead$ 4.00Fixed selling expense$ 3.10Fixed administrative$ 2.10expenseSales commissions$ 1.10Variable administrative$ 0.55expense2. If 8,000 units are produced and sold,what is the variable cost per unit producedand sold?3. If 12,500 units are produced and sold,what is the variable cost per unit producedand sold?4. If 8,000 units are produced and sold,what is the total amount of variable costsrelated to the units produced and sold?5. If 12,500 units are produced and sold,what is the total amount of variable costsrelated to the units produced and sold?

Name: Martinez Company's relevant range ofproduction is 7,500 units to 12,5
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Description: Martinez Company's relevant range ofproduction is 7,500 units to 12,500 units.When it produces and sells 10,000 units, itsaverage costs per unit are as follows:Average Costper UnitDirect materials$ 6.10Direct labor$ 3.60Variable manufacturingoverhea

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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 Direct materials $ 6.10 Direct labor $ 3.60 Variable manufacturing $ 1.40 overhead Fixed manufacturing overhead $ 4.00 Fixed selling expense $ 3.10 Fixed administrative $ 2.10 expense

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 Direct materials $ 6.10 Direct labor $ 3.60 Variable manufacturing $ 1.40 overhead Fixed manufacturing overhead $ 4.00 Fixed selling expense $ 3.10 Fixed administrative $ 2.10 expense

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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 Direct materials $ 6.00 Direct labor $ 3.50 Variable manufacturing overhead $ 1.50 Fixed manufacturing overhead $ 4.00 Fixed selling expense $ 3.00 Fixed administrative expense $ 2.00 Sales commissions $ 1.00 Variable administrative expense $ 0.50 Foundational 1-6 (Static) 6. If 12,500 units are produced and sold, what is the total amount of variable costs related to the units produced and sold?