Martinez Companys relevant range of production is 7,500 units to 12,500 units. When it produces...
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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 $ 6.20 Direct labor $ 3.70 Variable manufacturing overhead $ 1.60 Fixed manufacturing overhead $ 4.00 Fixed selling expense $ 3.20 Fixed administrative expense $ 2.20 Sales commissions $ 1.20 Variable administrative expense $ 0.45
If 8,000 units are produced and sold, what is the total amount of variable costs related to the units produced and sold?
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