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Erkkila Inc. reports that at an activity level of 6,800 machine-hours in a month, its total variable inspection cost is $426, 530 and its total
Erkkila Inc. reports that at an activity level of 6,800 machine-hours in a month, its total variable inspection cost is $426, 530 and its total fixed inspection cost is $197,309.
What would be the average fixed inspectioln cost per unit at an activity level of 7,100 machine-hours in a month? Assume that this level of activity is within the relevant range.
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