Question

Check my worke 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: Average Cost Per 15 of 15 Unit Direct materials $5.ee Direct labor $2.50 $1.40 $4.00 $2.ee $2.20 $1.20 Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Book se.45 Print ferences 15. What incremental manufacturing cost will Martinez incur if it increases production from 10,000 to 10,001 units? (Round your answer to 2 decimal places.) Incremental cost per unit produced w <Prey of 17 15 Next ere to search Oo LO

10.55 is not the correct answer

Answer 1

Contribution Margin per unit
Particulars	Amount ($)	Amount ($)
Selling price per unit		21.00
Less: Variable Costs
Direct Materials	5.00
Direct Labor	2.50
Variable manufacturing overhead	1.40
Sales Commissions	1.20
Variable administrative expenses	0.45
Total Variable cost per unit		10.55
Contribution Margin per unit		10.45
Therefore, the Contribution Margin per unit will be $10.45 per unit