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 UnitDirect materials$ 5.20Direct labor$ 2.70Variable manufacturing overhead$ 1.50Fixed manufacturing overhead$ 4.00Fixed selling expense$ 2.20Fixed administrative expense$ 2.00Sales commissions$ 1.00Variable administrative expense$ 0.50
7. If 8,000 units are produced, what is the average fixed manufacturing cost per unit produced?
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