Mullennex Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows: AverageCost per UnitDirect materials$6.55 Direct labor$3.50 Variable manufacturing overhead$1.25 Fixed manufacturing overhead$3.00 Fixed selling expense$0.50 Fixed administrative expense$0.40 Sales commissions$1.50 Variable administrative expense$0.40 If 5,000 units are produced, the average fixed manufacturing cost per unit produced is closest to:
A. $2.40
B. $3.00
C. $3.75
D. $2.70
Answer: A
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