Help Balerio Corporation's relevant range of activity is 9.000 units to 12,000 units. When it produces and sells 11,000 units, its average costs
per unit are as follows:
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed selling expense
Fixed administrative expense
Sales commissions
Variable administrative expense
Average cost per
Unit
$ 6.50
$ 3.30
$ 1.60
$14.50
$ 2.85
$ 2.10
$0.50
$0.40
Required:
a. For financial reporting purposes, what is the total amount of product costs incurred to make 11,000 units? (Do not round
intermediate calculations.)
b. If 10,000 units are sold, what is the variable cost per unit sold? (Round "Per unit" answer to 2 decimal places.)
c. If 10,000 units are sold, what is the total amount of variable costs related to the units sold? (Do not round intermediate
calculations.)
d. If the selling price is $19.30 per unit, what is the contribution margin per unit sold? (Round "Per unit" answer to 2 decimal places.)
e. What incremental manufacturing cost will the company incur if it increases production from 11,000 to 11,001 units? (Round "Per unit
answer to 2 decimal places.)
Total product cost
b. Variable cost per unit sold
Total variable costs
d Contribution margin per unit
e incremental manufacturing