50.3k views
18 votes
A company's relevant range of production is 10,000 to 15,000 units. When it produces and sells 12,000 units, its unit costs are as follows: Amount per Unit Direct materials $ 10.00 Direct labor $ 6.00 Variable manufacturing overhead $ 1.50 Fixed manufacturing overhead $ 5.00 Fixed selling expense $ 3.50 Fixed administrative expense $ 2.00 Sales commissions $ 1.00 Variable administrative expense $ 0.50 What is the incremental cost incurred if the company increases production from 12,000 to 12,001 units

User Dougvk
by
4.5k points

1 Answer

1 vote

Answer:

14.002

Step-by-step explanation:

User Timothy Klenke
by
4.4k points