Exercise 5-2 Shingle Enterprises is considering manufacturing a new product. It projects the cost of...
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Accounting
Exercise 5-2 Shingle Enterprises is considering manufacturing a new product. It projects the cost of direct materials and rent for a range of output as shown below. Output in Units Rent Expense Direct Materials 1,000 $ 5,060 $ 4,048 2,000 5,060 7,286 3,000 8,096 8,400 4,000 8,096 11,200 5,000 8,096 14,000 6,000 8,096 16,800 7,000 8,096 19,600 8,000 8,096 22,400 9,000 10,120 29,652 10,000 10,120 35,420 11,000 10,120 44,528 Determine the relevant range of activity for this product. The relevant range of activity for this product units LINK TO TEXT Calculate the variable costs per unit within the relevant range. (Round answer to 2 decimal places, e.g. 1.25.) Variable costs per unit per unit $ LINK TO TEXT Indicate the fixed cost within the relevant range. Fixed cost $
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