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$6.05 Direct labor$3.05 Variable manufacturing overhead$1.70 Fixed manufacturing overhead$3.00 Fixed selling expense$0.50 Fixed administrative expense$0.40 Sales commissions$1.00 Variable 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. $10.80
B. $13.80
C. $14.30
D. $16.20
Answer: A
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