1-15 Martinez Companys relevant range of production is 7,500 units to 12,500 units....
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Accounting
1-15
Martinez Companys 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
$
5.20
Direct labor
$
2.70
Variable manufacturing overhead
$
1.50
Fixed manufacturing overhead
$
4.00
Fixed selling expense
$
2.20
Fixed administrative expense
$
2.00
Sales commissions
$
1.00
Variable administrative expense
$
0.50
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.)
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