At an Activity Level of 7,900 Machine-Hours in a Month

question 15

Multiple Choice

At an activity level of 7,900 machine-hours in a month, Manchester Corporation's total variable maintenance cost is $430,550 and its total fixed maintenance cost is $417,120.
-What would be the average fixed maintenance cost per unit at an activity level of 8,000 units in a month? Assume that this level of activity is within the relevant range.

• A) $52.14
• B) $70.75
• C) $52.80
• D) $107.30

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