At an activity level of 9,000 machine-hours in a month, kirk corporation's total variable production engineering cost is $796,500 and its total fixed production engineering cost is $235,290. question: what would be the total production engineering cost per unit, both fixed and variable, at an activity level of 9,300 machine-hours in a month? assume that this level of activity is within the relevant range.

You are the manager of a large crude-oil refinery. as part of the refining process, a certain heat exchanger (operated at high temperatures and with abrasive material flowing through it) must be replaced every year. the replacement and downtime cost in the first year is $165 comma 000. this cost is expected to increase due to inflation at a rate of 7% per year for six years (i. e. until the eoy 7), at which time this particular heat exchanger will no longer be needed. if the company's cost of capital is 15% per year, how much could you afford to spend for a higher quality heat exchanger so that these annual replacement and downtime costs could be eliminated?