Business, 19.03.2020 19:04, shookiegriffin

Schonhardt Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows:

Average Cost per Unit
Direct materials $ 7.15
Direct labor $ 3.40
Variable manufacturing overhead $ 1.35
Fixed manufacturing overhead $ 2.80
Fixed selling expense $ 0.70
Fixed administrative expense $ 0.40
Sales commissions $ 0.50
Variable administrative expense $ 0.40

If 4,500 units are produced, the total amount of fixed manufacturing cost incurred is closest to:

Answers: 2

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Schonhardt Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces...