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Find the inspection activity cost per unit

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Problem - Roen Company incurred an activity cost of $105,600 for inspecting 40,000 units of production. Management determined that the inspecting objectives could be met without inspecting every unit. Therefore, rather than inspecting 40,000 units of production, the inspection activity was limited to a random selection of 5,000 units out of the 40,000 units of production. Determine the inspection activity cost per unit on 40,000 units of total production both before and after the improvement.

Reference no: EM132718018

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