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AX28112 company is a highly automated manufacturer. At an activity level of 7,800 units, the company's total quality control cost equal $258,800. This amount includes
AX28112 company is a highly automated manufacturer. At an activity level of 7,800 units, the company's total quality control cost equal $258,800. This amount includes equipment lease cost of $76,000 (all fixed) and manual inspection cost of $78,000 (all variable). The remaining $104,800 of the total quality control cost consists of electronic testing (mixed). At an activity level of 9,800 units, electronic testing cost totals $116,800. Assume that the relevant range includes all of the activity levels mentioned in this problem for the AX28112 company. If 8,600 units are projected for the next period, how much would the total expected quality control cost be? Multiple Choice $185,600 $271,600
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