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Michelman Company sells health insurance. It is interested in determining the cost equation for claims processing so it can more accurately budget its claims department. Information concerning costs and volumes for three months during 2010 appear below:

Month	Activity	Cost
May	55,000 claims	$79,700
October	49,000 claims	$66,000
December	46,000 claims	$68,000

Using the high-low method, what is the level of fixed costs? Use activity as the measure of activity.