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

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 Rent Direct Materials in Units Expense s 5,812 7,265 1,000 2,000 7,265 10,462 3,000 11,624 8,400 4,000 11,624 11,200 5,000 11,624 14,000 16,800 6,000 11,624 7,000 11,624 19,600 8,000 11,624 22,400 14,530 9,000 42,573 10,000 14,530 50,855 11,000 14,530 63,932 Determine the relevant range of activity for this product. The relevant range of activity for this product units LINK TO TEXT Calculate the variable costs per unit within the relevant range. (Round answer to 2 decimal places, e.g. 1.25.) Variable costs per unit per unit LINK TO TEXT Indicate the fixed cost within the relevant range Fixed cost

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!