Erkkila Inc. reports that at an activity level of 6500 machine-hours in a month, its total variable inspection cost is $423,830 and its total fixed inspection cost is $158,372.What would be the average fixed inspection cost per unit at an activity level of 6800 machine-hours in a month? Assume that this level of activity is within the relevant range.
A. $40.84
B. $89.57
C. $24.36
D. $23.29
Answer: D
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