Erkkila Inc. reports that at an activity level of 6,900 machine-hours in a month, its total variable inspection cost is $424,430 and its total fixed inspection cost is $174,888.

What would be the average fixed inspection cost per unit at an activity level of 7,200 machine-hours in a month? Assume that this level of activity is within the relevant range.

Multiple Choice

• $86.86

• $25.35

• $36.17

• $24.29