Erkkila Inc

question 36

Multiple Choice

Erkkila Inc. reports that at an activity level of 2,100 machine-hours in a month, its total variable inspection cost is $69,846 and its total fixed inspection cost is $9,072. What would be the average fixed inspection cost per unit at an activity level of 2,400 machine-hours in a month? Assume that this level of activity is within the relevant range.

• A) $37.58
• B) $4.32
• C) $15.23
• D) $3.78

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Definitions:

Grade-Point Average

A numerical calculation that represents the average value of the accumulated final grades earned in courses over time.

Conscientiousness

A personal attribute noted for systematic behavior, reliability, and a deep dedication to responsibilities.

Openness

One of the five major personality traits, characterized by a willingness to try new things, be creative, and think abstractly.