In theMarigold, maintenance costs are a mixed cost. At the low level of activity (40direct labor hours), maintenance costs are $300. At the high level of activity (300direct labor hours), maintenance costs are $1650. Using the high-low method, what is the variable maintenance cost per unit and the total fixed maintenance cost?

Variable Cost Per UnitTotal Fixed Cost

a) $5.19$93

b) $5.50$110

c) $5.50$600

d) $5.19$1350

What letter is correct?