RevampScamp turns regular Scamp trailers (very lightweight camping trailers) into fancy, high-end travel trailers. RevampScamp's relevant range of production is 120 – 240 units. When it produces and sells 140 units, its average costs per unit are as follows: Average Cost Per Unit $20,000 Direct Materials Direct Labor $3,000 Variable Manufacturing Overhead Fixed Manufacturing Overhead Fixed Selling Expense Fixed Administrative Expense $2,000 $1,000 $500 $250 Sales Commissions $750 Variable Administrative Expense $200 Assume RevampScamp has produced 220 units and expects to sell 205 of them. If a new customer expresses interest in buying 5 extra units that have been produced and would otherwise remain unsold, what is the total incremental cost incurred to sell these units to the customer? Multiple Choice $13,300 $3,800 $389,250 $14,250

RevampScamp turns regular Scamp trailers (very lightweight camping trailers) into fancy, high-end travel trailers. RevampScamp's relevant range of production is 120 – 240 units. When it produces and sells 140 units, its average costs per unit are as follows: Average Cost Per Unit $20,000 Direct Materials Direct Labor $3,000 Variable Manufacturing Overhead Fixed Manufacturing Overhead Fixed Selling Expense Fixed Administrative Expense $2,000 $1,000 $500 $250 Sales Commissions $750 Variable Administrative Expense $200 Assume RevampScamp has produced 220 units and expects to sell 205 of them. If a new customer expresses interest in buying 5 extra units that have been produced and would otherwise remain unsold, what is the total incremental cost incurred to sell these units to the customer? Multiple Choice $13,300 $3,800 $389,250 $14,250

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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