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Ans: It is Given that total Fixed Manufacturing cost will remain constant over the production range i.e. 7,500 units to 12,500 units
Total fixed Manufacturing cost from above information: No of units* Fixed Manufacturing overhead
=> 10,000*4.00 per unit
=> $40,000
and fixed manufacturing cost will remain constant for production of units from 7,500 to 12,500 therefore when 12,500 units are produced total amount of fixed manufacturing cost incurred to support the level of production will be $40,000
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