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$5.50 Direct labor$3.90 Variable manufacturing overhead$1.30 Fixed manufacturing overhead$13.50 Fixed selling expense$2.25 Fixed administrative expense$1.80 Sales commissions$0.50 Variable 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. $15.00
C. $12.15
D. $13.50
Answer: C
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