Shum Manufacturing, which uses the high-low method, makes a product called Kwan. The company incurs three different cost types (A, B, and C) and has a relevant range of operation between 2,500 units and 8,000 units per month. Per-unit costs at two different activity levels for each cost type are presented below.

				Type A				Type B				Type C				Total
	5,000	units		$	18			$	51			$	18			$	87
	7,500	units			18				34				17				69

If Shum produces 8,000 units, the total cost would be:

Multiple Choice

$493,500.

$627,000.

$534,000.

$792,000.

None of the answers is correct.