Schonhardt 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$7.15 Direct labor$3.40 Variable manufacturing overhead$1.35 Fixed manufacturing overhead$2.80 Fixed selling expense$0.70 Fixed administrative expense$0.40 Sales commissions$0.50 Variable administrative expense$0.40 If 5,000 units are produced, the total amount of fixed manufacturing cost incurred is closest to:
A. $11,200
B. $16,800
C. $12,600
D. $14,000
Answer: A
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