Erkkila Inc. reports that at an activity level of 6,000 machine-hours in a month, its total variable inspection cost is $425,330 and its total fixed inspection cost is $162,477.

What would be the average fixed inspection cost per unit at an activity level of 6,300 machine-hours in a month? Assume that this level of activity is within the relevant range.

Multiple Choice

• $97.97

• $27.08

• $43.81

• $25.79