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Required information (The following information applies to the questions displayed below.) Martinez Companys relevant range
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Calculation of average fixed manufacturing cost per unit if 8,000 units are produced

Average fixed manufacturing cost per unit = Total fixed manufacturing cost/ number of units produced

                                                                                         = $ 40,000/ 8,000 units

                                                                                        = $ 5.00 per unit

Therefore average fixed manufacturing cost per unit if 8,000 units are produced is $ 5.00

Note: The total fixed manufacturing cost will remain same whether 8,000 units or 10,000 units are produced. However, if the number of units produced reduces, the average fixed manufacturing cost per unit will increase and vice-versa.   

Working Note:

Calculation of Total fixed manufacturing overhead

Fixed manufacturing overhead cost = Average Fixed manufacturing overhead cost per unit when 10,000 units are produced X 10,000 units

                                                                     = $ 4.00 per unit X 10,000 units

                                                                     = $ 40,000  

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