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

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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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