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Determine the relevant range of activity for this product

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Question - Shingle Enterprises is considering manufacturing a new product. It projects the cost of direct materials and rent for a range of output as shown below.

Output in Units Rent Expense Direct Materials

1,000 5,900 4,720

2,000 5,900 8,496

3,000 9,440 7,800

4,000 9,440 10,400

5,000 9,440 13,000

6,000 9,440 15,600

7,000 9,440 18,200

8,000 9,440 20,800

9,000 11,800 34,574

10,000 11,800 41,300

11,000 11,800 51,920

Determine the relevant range of activity for this product.

Reference no: EM131875703

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