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What would be the average fixed inspection cost

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Reference no: EM131571632

Question - Erkkila Inc. reports that at an activity level of 7,000 machine-hours in a month, its total variable inspection cost is $424,580 and its total fixed inspection cost is $179,142.

What would be the average fixed inspection cost per unit at an activity level of 7,300 machine-hours in a month? Assume that this level of activity is within the relevant range.

Reference no: EM131571632

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