Calculate the average fixed maintenance

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Reference no: EM13942307

At an activity level of 7,200 machine-hours in a month, your company's total variable maintenance cost is $422,000 and its total fixed maintenance cost is $442,800. Management has asked you to calculate the average fixed maintenance cost per unit at an activity level of 8,200 units in a month. You checked and this new level of activity, like the previous, is within the relevant range. So, what is the average fixed maintenance cost per unit at this activity level?

$54.00

$58.61

$61.50

$120.11

some other amount

Reference no: EM13942307

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