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Erkila Inc. reports that at an activity level of 6,700 machine-hours in a month, its total variable inspection cost is $426,380 and its total fixed
Erkila Inc. reports that at an activity level of 6,700 machine-hours in a month, its total variable inspection cost is $426,380 and its total fixed inspection cost is $192,780.
What would be the average fixed inspection cost per unit at an activity level of 7,000 machine-hours in a month? Assume that this level of activity is within the relevant range.
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