Erkkila Inc. reports that at an activity level of 6,600 machine-hours in a month, its total variable inspection cost is $423,980 and its total fixed inspection cost is $162,426.

What would be the average fixed inspection cost per activity unit at an activity level of 6,900 machine-hours in a month? Assume that this level of activity is within the relevant range.

rev: 03_22_2017_QC_CS-83283

$23.54

$88.85

$24.61

$39.63