Question: Cullumber Enterprises is considering manufacturing a new product. It projects the cost of direct materials and rent for a range of output as shown below.

 Cullumber Enterprises is considering manufacturing a new product. It projects thecost of direct materials and rent for a range of output asshown below. Output Rent Direct in Units Expense Materials 1,000 $7,390 $5,9122,000 7,390 7,500 3,000 11,824 7,500 4,000 11,824 10,000 5,000 11,824 12,500

Cullumber 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 Rent Direct in Units Expense Materials 1,000 $7,390 $5,912 2,000 7,390 7,500 3,000 11,824 7,500 4,000 11,824 10,000 5,000 11,824 12,500 6,000 11,824 15,000 7,000 11,824 17,500 8,000 11,824 20,000 9,000 14,780 43,305 10,000 14,780 51,730 11,000 14,780 65,032 Determine the relevant range of activity for this product. The relevant range of activity for this product 7 units Calculate the variable costs per unit within the relevant range. (Round answer to 2 decimal places e.g. 2.25.) Variable costs per unit per unit 35 Indicate the fixed cost within the relevant range. Fixed cost to

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