Massawa Corp. relevant range of production is 7,500 units to 12,500 units. When it produces...
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Massawa Corp. relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its unit costs are as follows: Amount Per Unit Direct materials $ 6.00 Direct labour $ 3.50 Variable manufacturing overhead $ 1.50 Fixed manufacturing overhead $ 4.00 Fixed selling expense $ 3.00 Fixed administrative expense $ 2.00 Sales commissions $ 1.00 Variable administrative expense $ 0.50 Required: a. If 12,500 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?
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