Kesterson Corporation has provided the following information:  Cost per UnitCost per PeriodDirect materials$6.20  Direct labor$3.10  Variable manufacturing overhead$1.35  Fixed manufacturing overhead  $14,000Sales commissions$1.50  Variable administrative expense$0.40  Fixed selling and administrative expense  $4,500 The incremental manufacturing cost that the company will incur if it increases production from 5,000 to 5,001 units is closest to:

A. $10.65
B. $16.25
C. $13.95
D. $13.45


Answer: A

Business

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