Managerial Accounting (15th Edition)

Published by McGraw-Hill Education
ISBN 10: 007802563X
ISBN 13: 978-0-07802-563-1

Chapter 2 - Managerial Accounting and Cost Concepts - The Foundational 15 - Required - Page 53: 15

Answer

$\$11$

Work Step by Step

If it increases production from 10,000 to 10,001 units, those manufacturing costs that are variable are: Direct materials, Direct labor, Variable manufacturing overhead. $\$6.00 + \$3.50 + \$1.50 = \$11$ All other costs are either fixed or sales and administrative costs.
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