rect labor $ 2.60 riable manufacturing overhead ked manufacturing overhead zed selling expense ced administrative expense $ 1.60 4.00 $ 2.10 $ 2.10 les commissions $ 1.10 riable administrative expense 0.55
rect labor $ 2.60 riable manufacturing overhead ked manufacturing overhead zed selling expense ced administrative expense $ 1.60 4.00 $ 2.10 $ 2.10 les commissions $ 1.10 riable administrative expense 0.55
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![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:
Average Cost Per
Unit
Direct materials
$
5.10
Direct labor
$
2.60
$
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed selling expense
1.60
$
4.00
$
2.10
Fixed administrative
expense
$
2.10
Sales commissions
$
1.10
Variable administrative expense
$
0.55
15. What incremental manufacturing cost willI Martinez incur if it increases production from 10,000 to 10,001 units? (Round your answer
to 2 decimal places.)
X Answer is complete but not entirely correct.
Incremental cost per unit produced
12,000.00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff1919e0a-e002-44f9-a5ba-161f9f47a3d3%2F2512946b-108a-49c3-9e5e-625b8312f66d%2Fbv9p6el_processed.png&w=3840&q=75)
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:
Average Cost Per
Unit
Direct materials
$
5.10
Direct labor
$
2.60
$
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed selling expense
1.60
$
4.00
$
2.10
Fixed administrative
expense
$
2.10
Sales commissions
$
1.10
Variable administrative expense
$
0.55
15. What incremental manufacturing cost willI Martinez incur if it increases production from 10,000 to 10,001 units? (Round your answer
to 2 decimal places.)
X Answer is complete but not entirely correct.
Incremental cost per unit produced
12,000.00
![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:
Average Cost Per
Unit
Direct materials
$
5.10
$
$
Direct labor
2.60
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed selling expense
Fixed administrative expense
1.60
$
4.00
$
2.10
$
2.10
Sales commissions
$
1.10
Variable administrative expense
$
0.55
13. If the selling price is $21.10 per unit, what is the contribution margin per unit? (Do not round intermediate calculations. Round your
answer to 2 decimal places.)
X Answer is complete but not entirely correct.
Contribution margin per unit
$
9.50](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff1919e0a-e002-44f9-a5ba-161f9f47a3d3%2F2512946b-108a-49c3-9e5e-625b8312f66d%2Fnbmz3r_processed.png&w=3840&q=75)
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:
Average Cost Per
Unit
Direct materials
$
5.10
$
$
Direct labor
2.60
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed selling expense
Fixed administrative expense
1.60
$
4.00
$
2.10
$
2.10
Sales commissions
$
1.10
Variable administrative expense
$
0.55
13. If the selling price is $21.10 per unit, what is the contribution margin per unit? (Do not round intermediate calculations. Round your
answer to 2 decimal places.)
X Answer is complete but not entirely correct.
Contribution margin per unit
$
9.50
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