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Question(s) / Instruction(s):

At an activity level of 7,900 machine-hours in a month, Manchester Corporation\'s total variable maintenance cost is $430,550 and its total fixed maintenance cost is $417,120.

What would be the average fixed maintenance cost per unit at an activity level of 8,000 units in a month? Assume that this level of activity is within the relevant range.

a)            $52.14                                   

b)            $70.75

c)            $52.80

d)            $107.30

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