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 average fixed inspection cost per unit at an activity level of 6,700 machine-hours in a month? Assume that this level of activity is within the relevant range.
A) $23.04
B) $90.32
C) $24.12
D) $45.83
Correct Answer:
Verified
Correct Answer:
Verified
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