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Martinez Companys 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:
1. For financial accounting purposes, what is the total amount of product costs incurred to make
10,000 units? (Do not round intermediate calculations.)
2. For financial accounting purposes, what is the total amount of period costs incurred to sell
10,000 units? (Do not round intermediate calculations.)
3. If 8,000 units are produced and sold, what is the variable cost per unit produced and sold?
(Round your answer to 2 decimal places.)
4. If 12,500 units are produced and sold, what is the variable cost per unit produced and sold?
(Round your answer to 2 decimal places.)
5. If 8,000 units are produced and sold, what is the total amount of variable costs related to the
units produced and sold? (Do not round intermediate calculations.)
6. If 12,500 units are produced and sold, what is the total amount of variable costs related to the
units produced and sold? (Do not round intermediate calculations.)
7. If 8,000 units are produced, what is the average fixed manufacturing cost per unit produced?
8. If 12,500 units are produced, what is the average fixed manufacturing cost per unit produced?
(Round your answer to 2 decimal places.)
9. If 8,000 units are produced, what is the total amount of fixed manufacturing cost incurred to
support this level of production?
10. If 12,500 units are produced, what is the total amount of fixed manufacturing cost incurred to
support this level of production?
11. If 8,000 units are produced, what is the total amount of manufacturing overhead cost incurred
to support this level of production? What is this total amount expressed on a per unit
basis?(Round your "per unit" answer to 2 decimal places.)
12. If 12,500 units are produced, what is the total amount of manufacturing overhead cost
incurred to support this level of production? What is this total amount expressed on a per unit
basis? (Round your "per unit" answer to 2 decimal places.)
13. If the selling price is $21.50 per unit, what is the contribution margin per unit? (Do not round
intermediate calculations. Round your answer to 2 decimal places.)
14. If 11,000 units are produced, what are the total amounts of direct and indirect manufacturing
costs incurred to support this level of production? (Do not round intermediate calculations.)
15. What incremental manufacturing cost will Martinez incur if it increases production from
10,000 to 10,001 units? (Round your answer to 2 decimal places.)Average Cost Per UnitDirect
materials$ 5.50Direct labor$ 3.00Variable manufacturing overhead$ 1.50Fixed manufacturing
overhead$ 4.00Fixed selling expense$ 2.50Fixed administrative expense$ 2.00Sales
commissions$ 1.00Variable administrative expense$ 0.50

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Martinez Company�s relevant range of production is 7,500 units to 12.pdf

  • 1. Martinez Companys 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: 1. For financial accounting purposes, what is the total amount of product costs incurred to make 10,000 units? (Do not round intermediate calculations.) 2. For financial accounting purposes, what is the total amount of period costs incurred to sell 10,000 units? (Do not round intermediate calculations.) 3. If 8,000 units are produced and sold, what is the variable cost per unit produced and sold? (Round your answer to 2 decimal places.) 4. If 12,500 units are produced and sold, what is the variable cost per unit produced and sold? (Round your answer to 2 decimal places.) 5. If 8,000 units are produced and sold, what is the total amount of variable costs related to the units produced and sold? (Do not round intermediate calculations.) 6. If 12,500 units are produced and sold, what is the total amount of variable costs related to the units produced and sold? (Do not round intermediate calculations.) 7. If 8,000 units are produced, what is the average fixed manufacturing cost per unit produced? 8. If 12,500 units are produced, what is the average fixed manufacturing cost per unit produced? (Round your answer to 2 decimal places.) 9. If 8,000 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production? 10. If 12,500 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production? 11. If 8,000 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? What is this total amount expressed on a per unit basis?(Round your "per unit" answer to 2 decimal places.) 12. If 12,500 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? What is this total amount expressed on a per unit basis? (Round your "per unit" answer to 2 decimal places.) 13. If the selling price is $21.50 per unit, what is the contribution margin per unit? (Do not round intermediate calculations. Round your answer to 2 decimal places.) 14. If 11,000 units are produced, what are the total amounts of direct and indirect manufacturing costs incurred to support this level of production? (Do not round intermediate calculations.)
  • 2. 15. What incremental manufacturing cost will Martinez incur if it increases production from 10,000 to 10,001 units? (Round your answer to 2 decimal places.)Average Cost Per UnitDirect materials$ 5.50Direct labor$ 3.00Variable manufacturing overhead$ 1.50Fixed manufacturing overhead$ 4.00Fixed selling expense$ 2.50Fixed administrative expense$ 2.00Sales commissions$ 1.00Variable administrative expense$ 0.50