Erkkila Inc

question 47

Multiple Choice

Erkkila Inc. reports that at an activity level of 7,900 machine-hours in a month, its total variable inspection cost is $210,061 and its total fixed inspection cost is $191,970.
-What would be the average fixed inspection cost per unit at an activity level of 8,100 machine-hours in a month? Assume that this level of activity is within the relevant range.

• A)$50.89
• B)$24.30
• C)$23.70
• D)$32.96

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Definitions:

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of values.

Average Amount

Similar to mean, it represents the central value of a data set by calculating the sum of all numbers in the set divided by the quantity of numbers.

Sugar

A sweet-tasting, soluble carbohydrate found in many plants and used as a sweetener in food and beverages.

Standard Deviation

A statistic that measures the dispersion or variability of a set of data points relative to its mean, indicating how spread out the values are.