A.

The cost of a lubricant used for automated machining operations tends to vary with the speed of machine operations, and the machine is converted into units of product manufactured each hour. Management hopes to be able to estab- lish the fixed portion and the variable portion of the cost. A record of the costs for various units of produce manufactured is given below: Costs Units Produced 2020 March 1,200 P5,800 April 1,000 5,900 May 800 5,500 June 1,600 6,600 July 1,000 5,900 August 1,200 6,000 September 800 5,400 October 500 5,000 November 1,200 5,900 800 December 5,500