What Was All That One in a Million Talk, Inc., a manufacturer of model cross country mopeds, incurred the following per unit costs in its monthly operations:

Month	Activity Level	Cost Per Moped
June	100 mopeds	$100.00
July	85 mopeds	$112.00
August	80 mopeds	$93.75
September	75 mopeds	$105.00

Assuming the relevant range extends to 1,560 mopeds per year and the above data set does not contain an outlier, which of the following statements is correct? (The company uses the high low method to develop cost behavior equations.)

A.

For each additional moped manufactured, costs are expected to increase by $85.00.

B.

If 1,500 mopeds are expected to be produced in a given year, the estimated total annual costs would be $129,000.

C.

The annual fixed costs are expected to be $1,500.

D.

The manufacturing costs are variable costs because the per unit amount changes with the activity level.

E.

More than one of the above statements is correct.

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