Erkkila Inc

question 131

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 total variable inspection cost at an activity level of 6,700 machine-hours in a month? Assume that this level of activity is within the relevant range.

• A)$423,680
• B)$443,540
• C)$161,604
• D)$578,048

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