Question: Erkkila Inc. reports that at an activity level of 7,300 machine-hours in a month, its total variable inspection cost is $425,030 and its total fixed inspection cost is $192,204.
What would be the average fixed inspection cost per unit at an activity level of 7,600 machine-hours in a month? Assume that this level of activity is within the relevant range.
$31.89
$84.55
$26.33
$25.29