At an Activity Level of 9,000 Machine-Hours in a Month

Multiple Choice

At an activity level of 9,000 machine-hours in a month, Moffatt Corporation's total variable maintenance cost is $390,240 and its total fixed maintenance cost is $368,280.What would be the average fixed maintenance cost per unit at an activity level of 9,300 machine-hours in a month? Assume that this level of activity is within the relevant range.

A) $40.92
B) $84.28
C) $39.60
D) $54.93