Curlumber Enterprises is considering manufacturing a new product. It projects the cost of direct materials and rent for a range or output as follows. Output in Units 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 Rent Cost 11.000 $5,290 5,290 8,464 8,464 8,464 8,464. 8,464 8.464 9,000 10.580 10,000 10.580 10.580 Direct Materials $4,200 7,200 7,200 9,600. 12,000 14,400 16.800 19,200 30.999 37,030 46.552

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Curiumber Enterprises is considering manufacturing a new product. It projects the cost of direct materials and rent for a range or
output as follows.
Output
in Units
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
Rent
Cost
11.000
$5,290
5,290
8,464
8,464
8,464
8,464.
8,464
8.464
10.580
10,000 10,580
10.580
Direct
Materials
$4,200
7,200
7,200
9,600.
12,000
14,400
16.800
19,200
30.999
37,030
46.552
Transcribed Image Text:Curiumber Enterprises is considering manufacturing a new product. It projects the cost of direct materials and rent for a range or output as follows. Output in Units 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 Rent Cost 11.000 $5,290 5,290 8,464 8,464 8,464 8,464. 8,464 8.464 10.580 10,000 10,580 10.580 Direct Materials $4,200 7,200 7,200 9,600. 12,000 14,400 16.800 19,200 30.999 37,030 46.552
Calculate the unit variable costs within the relevant range. (Round answer to 2 decimal places e.g. 2.25.)
Unit variable cost for direct materials
$
per unit
Transcribed Image Text:Calculate the unit variable costs within the relevant range. (Round answer to 2 decimal places e.g. 2.25.) Unit variable cost for direct materials $ per unit
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