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:
13. If the selling price is $22 per unit, what is the
contribution margin per unit? (Do not
round intermediate calculations. Round your answer
to 2 decimal places.)
contribution margin for unit _________
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? (Do not round intermediate calculations.)
total direct manufacturing cost___________
total indirect manufacturing cost__________
15. What incremental manufacturing cost will Martinez incur if it increases production from 10,000 to 10,001 units?
incremental cost per unit products___________
| Average Cost per Unit | |||
| Direct materials | $ | 6.00 | |
| Direct labor | $ | 3.50 | |
| Variable manufacturing overhead | $ | 1.50 | |
| Fixed manufacturing overhead | $ | 4.00 | |
| Fixed selling expense | $ | 3.00 | |
| Fixed administrative expense | $ | 2.00 | |
| Sales commissions | $ | 1.00 | |
| Variable administrative expense | $ | 0.50 | |
contribution margin for unit _________
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? (Do not round intermediate calculations.)
total direct manufacturing cost___________
total indirect manufacturing cost__________
15. What incremental manufacturing cost will Martinez incur if it increases production from 10,000 to 10,001 units?
incremental cost per unit products___________
