How do you calculate if 11000 units are produced what are

Reference no: EM13571892

Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its unit costs are as follows:

Amount Per Unit

Direct Material - $6.00

Direct Labor - $3.50

Variable manufacturing overhead - $1.50

Fixed manufacturing overhead - $4.00

Fixed selling expense - $3.00

Fixed administrative expense - $2.00

Sales commissions - $1.00

Variable administrative expense - $0.50

How do you calculate: If 11,000 units are produced, what are the total amounts of direct and indirect manufacturing costs incurred to support this level of production? and: What total incremental cost will Martinez incur if it increases production from 10,000 to 10,001 units?

Reference no: EM13571892

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