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

Shingle 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 in Units Rent Expense Direct Materials
1,000 $5,585 $4,468
2,000 5,585 8,042
3,000 8,936 7,500
4,000 8,936 10,000
5,000 8,936 12,500
6,000 8,936 15,000
7,000 8,936 17,500
8,000 8,936 20,000
9,000 11,170 32,728
10,000 11,170 39,095
11,000 11,170

49,148

Indicate the fixed cost within the relevant range

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