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Macy Corporation's relevant range of activity is 7,800 units to 16,000 units. When it produces and
sells 11,900 units, its average costs per unit are as follows: Average Cost per Unit Direct materials
$ 5.45 Direct labor $ 3.90 Variable manufacturing overhead $ 1.90 Fixed manufacturing overhead
$ 3.20 Fixed selling expense $ 1.20 Fixed administrative expense $ 0.90 Sales commissions $
1.15 Variable administrative expense $ 0.80 If the selling price is $31.50 per unit, the contribution
margin per

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Macy Corporations relevant range of activity is 7800 units.pdf

  • 1. Macy Corporation's relevant range of activity is 7,800 units to 16,000 units. When it produces and sells 11,900 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 5.45 Direct labor $ 3.90 Variable manufacturing overhead $ 1.90 Fixed manufacturing overhead $ 3.20 Fixed selling expense $ 1.20 Fixed administrative expense $ 0.90 Sales commissions $ 1.15 Variable administrative expense $ 0.80 If the selling price is $31.50 per unit, the contribution margin per