Erkkila Inc. reports that at an activity level of 6,000 machine-hours in a month, its total variable inspection cost is $425,330 and its total fixed inspection cost is $162,477. What would be the average fixed inspection cost per unit at an activity level of 6,300 machine-hours in a month?

Average inspection cost= $25.79 per machine-hour

Explanation:

Giving the following information:

The total fixed inspection cost is $162,477.

Number of machine-hours= 6,300

To calculate the average fixed inspection cost, we need to divide the total fixed inspection cast by the number of machine-hours:

Average inspection cost= 162,477/6,300= $25.79 per machine-hour

i'ts proportional. if the inflation rate is 12% for example, the cpi will be 12% less.

hope it ,

bioteacher101