Direct material = $7

Direct Labor = $4

Variable Manufacturing Overhead = $2

Fixed Manufacturing Overhead = $3

Fixed Selling Expense = $3

Fixed Admin Expense = $2

Sales commission = $1

Variable Admin Expense $.50

(Costs are when 10,000 units are produced and sold)

Relevant range is 7,500-12,500 units

1) If 8,000 units are produced, what is the average fixed manufacturing cost per unit produced?

2) If 12,500 units are produced, what is the average fixed manufacturing cost per unit produced?

3) If 8,000 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?

4) If 12,500 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?

5) If 8,000 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? What is the total amount expressed in a per unit basis?

6) If 12,500 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? What is the total amount expressed in a per unit basis?

7) If the selling price is $22 per unit, what is the contribution margin per unit sold?

8) If 11,000 units are produced, what are the total amounts of direct and indirect manufacturing costs incurred to support this level of production?

9) What total incremental cost will be incurred if production increases from 10,000 to 10,001 units?