Fiori Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 6.05 Direct labor $ 3.05 Variable manufacturing overhead $ 1.70 Fixed manufacturing overhead $ 3.00 Fixed selling expense $ 0.50 Fixed administrative expense $ 0.40 Sales commissions $ 1.00 Variable administrative expense $ 0.50 The incremental manufacturing cost that the company will incur if it increases production from 5,000 to 5,001 units is closest to: $16.20 $10.80 $13.80 $14.30
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Fiori Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and s...
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