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
Correct Answer:
Verified
Correct Answer:
Verified
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