Fasheh Corporation's relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its average costs per unit are as follows: Average Cost per UnitDirect materials$5.50Direct labor$3.90Variable manufacturing overhead$1.30Fixed manufacturing overhead$13.50Fixed selling expense$2.25Fixed administrative expense$1.80Sales commissions$0.50Variable administrative expense$0.45 If 10,000 units are produced, the average fixed manufacturing cost per unit produced is closest to:
A. $12.83
B. $13.50
C. $12.15
D. $15.00
Answer: C
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