Grundmann Inc

question 29

Multiple Choice

Grundmann Inc. reports that at an activity level of 6,500 machine-hours in a month, its total variable inspection cost is $487,110 and its total fixed inspection cost is $326,040.
-What would be the average fixed inspection cost per unit at an activity level of 6,600 units in a month? Assume that this level of activity is within the relevant range.

• A) $125.10
• B) $74.89
• C) $50.16
• D) $49.40

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