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Erkkila Inc. reports that at an activity level of 7,400 machine-hours in a month, its total variable inspection cost is $425,180 and its total fixed

Erkkila Inc. reports that at an activity level of 7,400 machine-hours in a month, its total variable inspection cost is $425,180 and its total fixed inspection cost is $196,658.

What would be the average fixed inspection cost per unit at an activity level of 7,700 machine-hours in a month? Assume that this level of activity is within the relevant range.

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