question erkkila inc reports that at an activity level of 6 100 machine hours in a m 4283283

Question

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

Salvadore Inc., a local retailer, has provided the following data for the month of September:

Merchandise inventory, beginning balance	$ 49,500
Merchandise inventory, ending balance	$ 42,700
Sales	$267,900
Purchases of merchandise inventory	$141,600
Selling expense	$ 17,000
Administrative expense	$ 59,900

The net operating income for September was:

$47,200

$127,300

$126,300

$42,600

Salvadore Inc., a local retailer, has provided the following data for the month of September:

Merchandise inventory, beginning balance	$49,300
Merchandise inventory, ending balance	$44,200
Sales	$260,700
Purchases of merchandise inventory	$142,400
Selling expense	$20,100
Administrative expense	$60,100

The cost of goods sold for September was:

$137,300

$142,400

$147,500

$222,600

Nikkel Corporation, a merchandising company, reported the following results for July:

Sales	$419,000
Cost of goods sold (all variable)	$175,500
Total variable selling expense	$23,600
Total fixed selling expense	$17,200
Total variable administrative expense	$15,400
Total fixed administrative expense	$31,400

The contribution margin for July is:

$370,400

$204,500

$155,900

$243,500

Nikkel Corporation, a merchandising company, reported the following results for July:

Sales	$434,000
Cost of goods sold (all variable)	$175,200
Total variable selling expense	$23,700
Total fixed selling expense	$15,500
Total variable administrative expense	$16,000
Total fixed administrative expense	$32,400

The gross margin for July is:

$386,100

$171,200

$219,100

$258,800

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.

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