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RA-35832 company manufactures a specialized equipment. At the lowest activity level of 5,400 units, the company incurs $183,200 in maintenance costs. This amount includes
RA-35832 company manufactures a specialized equipment. At the lowest activity level of 5,400 units, the company incurs $183,200 in maintenance costs. This amount includes equipment cost of $52,000 (all fixed) and inspection cost of $64,800 (all variable). The remaining $66,400 of the maintenance costs consists of expert testing cost (mixed). At the highest activity level of 7,400 units, expert testing cost totals $78,400. Assume that the relevant range includes all of the activity levels mentioned in this problem for the RA-35832 company. Suppose the RA-35832 company uses the high-low method to estimate its maintenance cost. If the the RA-35832 company plans to produce 6,200 units the next period, how much would the RA-35832 company's total expected maintenance cost be? Multiple Choice $201,200 $123,200 $219,200 $197,600
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