Strait Co. manufactures office furniture. During the most productive month of the year, 3,000 desks were manufactured

Question:

Strait Co. manufactures office furniture. During the most productive month of the year, 3,000 desks were manufactured at a total cost of $59,000. In the month of lowest production the company made 1,125 desks at a cost of $38,000. Using the high-low method of cost estimation, total fixed costs are
1. $13,000
2. $25,400
3. $21,000
4. $42,000