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WK- 5 EX Erkkila Inc. reports that at an activity level of 6,900 machine-hours in a month, its total variable inspection cost is $424,430 and

WK- 5 EX

Erkkila Inc. reports that at an activity level of 6,900 machine-hours in a month, its total variable inspection cost is $424,430 and its total fixed inspection cost is $174,888.

What would be the average fixed inspection cost per unit at an activity level of 7,200 machine-hours in a month? Assume that this level of activity is within the relevant range.

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