(Appendix 5A) Inspection Costs at One of Ratulowski Corporation's Factories

Multiple Choice

(Appendix 5A) Inspection costs at one of Ratulowski Corporation's factories are listed below:
Management believes that inspection cost is a mixed cost that depends on units produced.
-Using the high-low method,the estimate of the variable component of inspection cost per unit produced is closest to:

A) $8.14
B) $7.05
C) $0.12
D) $12.89