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#14 At an activity level of 6,500 machine-hours in a month, your company's total variable maintenance cost is $429,000 and its total fixed maintenance cost
#14
At an activity level of 6,500 machine-hours in a month, your company's total variable maintenance cost is $429,000 and its total fixed maintenance cost is $392,700. Management has asked you to calculate the average fixed maintenance cost per unit at an activity level of 7,700 units in a month. You checked and this new level of activity, like the previous, is within the relevant range. So, what is the average fixed maintenance cost per unit at this activity level?
$51.00
$66.00
$60.42
$126.42
some other amount
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