Quality Manufacturing Company wishes to estimate inspection costs for 19X6. It has been found that there is a high degree of correlation between the inspection costs and the number of units produced. Inspection costs and the number of units produced for 19X5 follow:

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Inspection Units Month cost produced January $145,000 500,000 February 140,000 400,000 March 144,000 450,000 April 180,000 600.000 May 210,000 700,000 June 220,000 800,000 July 185,000 600,000 August 187,000 650,000 September 182,000 625,000 October 190,000 675,000) November 180,000 640,000 December 175,000 600,000 Required: Project the inspection cost for January 19X6 by using the high-low method assuming that the production for January is expected to be 550.000 units.