Erkkila Inc. reports that at an activity level of 6,100 machine-hours in a month, its total variable inspection cost is $425,480 and its total fixed inspection cost is $166,656.

What would be the average fixed inspection cost per unit at an activity level of 6,400 machine-hours in a month? Assume that this level of activity is within the relevant range.

$26.04

$97.07

$27.32

$42.43