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. O $3,900 $11,700 O $8,480 O $8,200