15. What total incremental cost will Martinez incur if it increases production from 11,000 to 11,001 units

The question is incomplete, below is the complete question and accompanying data:

Martinez Company's relevant range of production is 8,500 units to 13,500 units. When it produces and sells 11,000 units, its unit costs are as follows:

                                                               Amount per Unit

Direct materials                                 $7.00

Direct labor                                         $4.50

Variable manufacturing overhead$1.40

Fixed manufacturing overhead         $5.00

Fixed selling expense                         $4.00

Fixed administrative expense         $2.10

Sales commissions                         $1.10

Variable administrative expense         $0.55

What total incremental cost will Martinez incur if it increases production from 11,000 to 11,001 units? (Round answers to 2 decimal places)

Answer

total incremental cost = $13.45

Explanation:

in the case of an increase in production quantity by 1 unit, (11,000 to 11,0001), only the variable costs will increase, because variable costs are those costs that increase as the unit of output/production increases.

The variable costs here are:

Direct material = $7.00

Direct labor      = $4.50

variable manufacturing overhead = $1.40

variable administrative expenses =$0.55

Total incremental cost = 7.00 + 4.50 + 1.40 + 0.55 = $13.45

Therefore, total incremental cost = $13.45

answer; i believe the correct answer is (a) purchase of treasury stock;