What would be the average fixed inspection cost

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Reference no: EM13792311

Erkkila Inc. reports that at an activity level of 6,100 machine-hours in a month, its total variable inspection cost is $425,480 and its total fixed inspection cost is $166,656.

What would be the average fixed inspection cost per unit at an activity level of 6,400 machine-hours in a month? Assume that this level of activity is within the relevant range.

$26.04

$97.07

$27.32

$42.43

Reference no: EM13792311

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