At an Activity Level of 5,300 Machine-Hours in a Month

question 7

Multiple Choice

At an activity level of 5,300 machine-hours in a month, Clyburn Corporation's total variable maintenance cost is $114,268 and its total fixed maintenance cost is $154,336.
-What would be the average fixed maintenance cost per unit at an activity level of 5,600 machine-hours in a month? Assume that this level of activity is within the relevant range.

• A)$50.68
• B)$27.56
• C)$35.79
• D)$29.12

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Definitions:

Bagels

A dense, doughnut-shaped bread roll, typically boiled before being baked, originating from the Jewish communities of Poland.

Unjust Enrichment

A legal principle stating one party should not be allowed to profit at another's expense without making restitution for the fair market value of any benefits received.

Legal Obligations

Duties enforced by law that a person or entity is required to fulfill.

Ratify

To officially approve or confirm, often used in the context of formalizing agreements or treaties.