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Martinez Companys 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 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Per Unit $ 3.76 $ 1.60 $ 4.e0 $ 3.20 $ 2.20 s1.20 $ 0.45 6.2θ What incremental manufocturing cost will Martinez incur if t increases production trom 10,000 to 10.001 units?(Round youranswer to 2 decimal places)
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Answer #1

solution :- Incremental manufacturing cost per unit produced = direct material cost per unit   

+ direct labor cost per unit + variable manufacturing overhead per unit

= 6.20 + 3.70 + 1.60

= $ 11.50

conclusion : incremental manufacturing cost per unit produced = $11.50

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