Question: Picture B D E G H 1 1 Assignment M N 2 3 Martinez Company's relevant range of production is 7,500 units to 12.500 units.

 Picture B D E G H 1 1 Assignment M N

Picture B D E G H 1 1 Assignment M N 2 3 Martinez Company's 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: 4 5 6 7 8 9 Average Cost por Unit $6.00 $3.50 $1.50 $4.00 $3.00 $2.00 $100 $0.50 Direct materials Direct labor Variablo manufacturing overhead Fixed manufacturing overhoad Fixed selling exponse Fixed administrative expense Salos commissions Variable administrative oxponse 10 11 12 13 14 15 28 30 31 16 Required: 17 1. For financial accounting purposes, what is the total amount of product costs incurred to make 10,000 units? 9. If 8,000 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production? 9 10. If 12,500 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production? 11. If 8,000 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? What is this total amount expressed on a per unit basis? 12. If 12,500 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? What is this total amount expressed on a per unit hasis? 35 13. If the selling price is $22 per unit, what is the contribution margin per unit? 36 14. If 11,000 units are produced, what are the total amounts of direct and indirect manufacturing costs incurred to support this level of production? 15. What incremental manufacturing cost will Martinez incur if it increases production from 10,000 to 10,001 units? 32 33 34 37 39 40

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