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Terra, Inc., is an automobile company. It is planning to spend a total amount of $150,000,000 on resources in its assembling unit. The practical capacity

Terra, Inc., is an automobile company. It is planning to spend a total amount of $150,000,000 on resources in its assembling unit. The practical capacity of these resources is 1,200,000 hours. Based on the given information, calculate the capacity cost rate for the assembling unit of Terra, Inc.

a.$105 per hour

b.$95 per hour

c.$125 per hour

d.$115 per hour

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