Seifer Inc.'s inspection costs are listed below:  Units Produced Inspection CostsApril119  $8,558May117  $8,535June113  $8,415July125  $8,736August152  $9,357September108  $8,320October120  $8,603November192  $10,337 Management believes that inspection cost is a mixed cost that depends on the number of units produced. Using the least-squares regression method, the estimates of the variable and fixed components of inspection cost would be closest to:

A. $24.08 per unit plus $5,709 per month
B. $24.01 per unit plus $5,727 per month
C. $24.37 per unit plus $5,658 per month
D. $67.74 per unit plus $8,858 per month


Answer: A

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