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ErkkilaIncorporated Reports That at an Activity Level of 2,100 Machine-Hours

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ErkkilaIncorporated 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.


Definitions:

Occupation

A person's regular work or profession; job or principal activity.

Credential Inflation

The phenomenon where the educational requirements for a job increase, even though the actual skills needed for the job do not.

Certificates

Official documents recognizing the completion of a course of study or verifying qualifications.

Degrees

Qualifications awarded by educational institutions, such as colleges or universities, to signify the completion of a course of study.

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