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 $ 5.50 Direct labor $ 3.00 Variable manufacturing overhead $ 1.50 Fixed manufacturing overhead $ 4.00 Fixed selling expense $ 2.50 Fixed administrative expense $ 2.00 Sales commissions $ 1.00 Variable administrative expense $ 0.50   10. If 12,500 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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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 $ 5.50
Direct labor $ 3.00
Variable manufacturing overhead $ 1.50
Fixed manufacturing overhead $ 4.00
Fixed selling expense $ 2.50
Fixed administrative expense $ 2.00
Sales commissions $ 1.00
Variable administrative expense $ 0.50

 

10. If 12,500 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?

 

 

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