Reference no: EM13480996

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 Materials $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 Questions 1) If 12,500 units are produced, what is the average fixed manufacturing cost per unit produced? 2) If 12,500 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? 3) If 12,500 units are produced, what is this total amount expressed on a per unit basis?