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RA-85673 company manufactures a specialized equipment. At the lowest activity level of 3,200 units, the company incurs $144,400 in maintenance costs. This amount includes
RA-85673 company manufactures a specialized equipment. At the lowest activity level of 3,200 units, the company incurs $144,400 in maintenance costs. This amount includes equipment cost of $30,000 (all fixed) and inspection cost of $44,800 (all variable). The remaining $69,600 of the maintenance costs consists of expert testing cost (mixed). At the highest activity level of 5,200 units, expert testing cost totals $105,600. Assume that the relevant range includes all of the activity levels mentioned in this problem for the RA-85673 company. Suppose the RA-85673 company uses the high-low method to estimate its maintenance cost. If the the RA-85673 company plans to produce 4,000 units the next period, how much would the RA-85673 company's total expected maintenance cost be? Multiple Choice $208,400 $170,000 $176,400 $114,000
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