Erkkila Inc

question 57

Multiple Choice

Erkkila Inc. reports that at an activity level of 6,400 machine-hours in a month, its total variable inspection cost is $423,680 and its total fixed inspection cost is $154,368. What would be the average fixed inspection cost per unit at an activity level of 6,700 machine-hours in a month? Assume that this level of activity is within the relevant range.

• A)$23.04
• B)$90.32
• C)$24.12
• D)$45.83

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