Inspection costs at one of Ratulowski Corporation's factories are listed below: Units ProducedInspection CostsApril777 $10,176May807 $10,404June798 $10,355July835 $10,665August822 $10,542September795 $10,313October805 $10,409November853 $10,795December796 $10,310 Management believes that inspection cost is a mixed cost that depends on units produced. Using the high-low method, the estimate of the fixed component of inspection cost per month is closest to:
A. $10,176
B. $3,852
C. $10,344
D. $10,441
Answer: B
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