Hicks 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 for the high and low costs and volumes for last year appear below Month Activity Cost May 100,000 claims $ 80,000 October 150,000 claims $100,000 Using the high-low method, with claims as the activity driver, what is the level of fixed costs? Answer $60,000 $120,000 $40,000 $0.40 per claim