Erkkila Inc. reports that at an activity level of 6,100 machine-hours in a month, its total variable inspection cost is $425,480 and its total fixed inspection cost is $166,656.
What would be the average fixed inspection cost per unit at an activity level of 6,400 machine-hours in a month? Assume that this level of activity is within the relevant range.
$26.04
$97.07
$27.32
$42.43