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Fiori Corporation's relevant range of activity is 2,500 units to 5,500 units. When it produces...

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Accounting

Fiori Corporation's relevant range of activity is 2,500 units to 5,500 units. When it produces and sells 4,000 units, its average costs per unit are as follows:

Average Cost per Unit Direct materials $ 6.60 Direct labor $ 2.90 Variable manufacturing overhead $ 1.65 Fixed manufacturing overhead $ 2.90 Fixed selling expense $ 0.95 Fixed administrative expense $ 0.85 Sales commissions $ 1.55 Variable administrative expense $ 1.05 The incremental manufacturing cost that the company will incur if it increases production from 4,500 to 4,501 units is closest to:

Multiple Choice $18.45 $11.15 $14.05 $15.00

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