Problem
Martinez Company Relavant of production is 7,500 units to 12,500 units. When it produces and sales 10,000 units, It cost are as follows:
Amount per Unit
Direct Materials $6.30
Direct Labor $3.80
Variable Manufacturing Overhead $1.50
Fixed Manufacturing Overhead $4.30
Fixed Selling Expense $3.30
Fixed Adminastrative Expense $2.00
Sales Commissions $1.00
Variable Administrative Expense $0.50
Using this data tableI
1. If 8,000 units are sold, what is the variable cost per unit sold?
2. If 12,500 units are sold, what is the variable cost per unit sold?