So You're Telling Me There's Still a Chance, Inc. is a manufacturer of leather briefcases. The company uses the high low method to develop cost behavior equations. The following per unit manufacturing costs were incurred in its operations for the last four months of the previous year:

Month	Activity Level	Cost Per Briefcase
September	105 briefcases	$67.00
October	63 briefcases	$100.00
November	72 briefcases	$94.00
December	117 briefcases	$64.00

Assuming the relevant range extends to 130 briefcases per month and the above data set does not contain an outlier, which of the following statements is incorrect?

A.

For each additional briefcase manufactured, costs are expected to increase by $22.00.

B.

The monthly fixed costs are expected to be $4,914.

C.

If 125 briefcases are expected to be produced in a given month, the estimated total monthly manufacturing costs would be $10,250.

D.

If 1,500 briefcases are expected to be produced in a given year, the estimated total annual manufacturing costs would be $91,968.

E.

The manufacturing costs are considered a mixed cost because they have both a variable component and a fixed component.