Reference no: EM132984817

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 Unit Direct materials$6.50

Direct labor$4.00

Variable manufacturing overhead$1.60

Fixed manufacturing overhead$4.00

Fixed selling expense$3.50

Fixed administrative expense $2.20

Sales commissions$1.20

Variable administrative expense$0.45

Problem 1: 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.)