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Schonhardt Corporation's relevant range of activity is 3,000 units to 5,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows:

Average
Cost per Unit
Direct materials $ 7.95
Direct labor $ 3.60
Variable manufacturing overhead $ 2.00
Fixed manufacturing overhead $ 2.60
Fixed selling expense $ 1.30
Fixed administrative expense $ 1.00
Sales commissions $ 1.10
Variable administrative expense $ 1.00

If 5,000 units are produced, the total amount of fixed manufacturing cost incurred is closest to:

a. $15,600

b. $22,400

c. $10,400

d. $18,500

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