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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

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92588766

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