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RA-96664 company manufactures a specialized equipment. At the lowest activity level of 3,400 units, the company incurs $120,800 in maintenance costs. This amount includes
RA-96664 company manufactures a specialized equipment. At the lowest activity level of 3,400 units, the company incurs $120,800 in maintenance costs. This amount includes equipment cost of $32,000 (all fixed) and inspection cost of $27,200 (all variable). The remaining $61,600 of the maintenance costs consists of expert testing cost (mixed). At the highest activity level of 5,400 units, expert testing cost totals $89,600. Assume that the relevant range includes all of the activity levels mentioned in this problem for the RA-96664 company. Suppose the RA-96664 company uses the high-low method to estimate its maintenance cost. If the the RA-96664 company plans to produce 4,200 units the next period, how much would the RA-96664 company's total expected maintenance cost be? Multiple Choice $138,400 $104,800 $142,800 $164,800
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