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: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $7.00 $4.50 $ 1.40 $ 4.00 $4.00 $ 2.10 $ 1.10 $ 0.55 15. What incremental manufacturing cost will Martinez incur if it increases production from 10,000 to 10,001 units? (Round your answ to 2 decimal places.) Incremental cost per unit produced

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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ces
Mc
Graw
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2
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:
2
Direct materials
Direct labor
S
15. What incremental manufacturing cost will Martinez incur if it increases production from 10,000 to 10,001 units? (Round your answe.
to 2 decimal places.)
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed selling expense
Fixed administrative expense
Sales commissions
Variable administrative expense
W
Incremental cost per unit produced
mmand
X
H
#3
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D
C
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Average Cost
per Unit
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$ 4.50
$ 1.40
$ 4.00
$ 4.00
$ 2.10
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A
6
$ 1.10
$ 0.55
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Transcribed Image Text:ces Mc Graw Hill 2 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: 2 Direct materials Direct labor S 15. What incremental manufacturing cost will Martinez incur if it increases production from 10,000 to 10,001 units? (Round your answe. to 2 decimal places.) Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense W Incremental cost per unit produced mmand X H #3 E D C ZE $ 4 R F < Prev % 5 V T Average Cost per Unit $7.00 $ 4.50 $ 1.40 $ 4.00 $ 4.00 $ 2.10 G A 6 $ 1.10 $ 0.55 B ස 15 of 15 tv ♫ Y H & 7 U N Next D * 00 8 J 1 M 2023-01...0.40 PM 2023-01...2.52 PM 2022- ( 9 < K A * O ) 0 < H L P A command I a
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Variable costs is a expense that changes in proportion of changes in activity level. 

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