Fiori Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows: Average Cost per UnitDirect materials$6.05Direct labor$3.05Variable manufacturing overhead$1.70Fixed manufacturing overhead$3.00Fixed selling expense$0.50Fixed administrative expense$0.40Sales commissions$1.00Variable administrative expense$0.50 The incremental manufacturing cost that the company will incur if it increases production from 5,000 to 5,001 units is closest to:
A. $13.80
B. $10.80
C. $16.20
D. $14.30
Answer: B
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