Question: RevampScamp turns regular Scamp trailers (very lightweight camping trailers) into fancy, high-end travel trailers. RevampScamps relevant range of production is 120 240 units. When it

RevampScamp turns regular Scamp trailers (very lightweight camping trailers) into fancy, high-end travel trailers. RevampScamps relevant range of production is 120 240 units. When it produces and sells 140 units, its average costs per unit are as follows:

RevampScamp turns regular Scamp trailers (very lightweight camping trailers) into fancy, high-end

Assume RevampScamp has produced 220 units and expects to sell 205 of them. If a new customer expresses interest in buying 5 extra units that have been produced and would otherwise remain unsold, what is the total incremental cost incurred to sell these units to the customer?

a. $13,300

b. $3,800

c. $389,250

d. $14,250

Direct Materials Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead Fixed Selling Expense Fixed Administrative Expense Sales Commissions |Variable Administrative Expense Average Cost Per Unit $20,000 $3,000 $2,000 $1,000 $500 $250 $750 $200

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