The Following Data Pertains to Activity and Maintenance Costs for Two

The following data pertains to activity and maintenance costs for two recent years: $\begin{array}{lrr}& \text { Year } 2& \text { Year } 1 \\ \text {Activity level in units } &12,000&8,000\\ \text {Maintenance cost } &£ 15,000 &£ 12,000\\\end{array}$

Using the high-low method, the cost formula for maintenance would be:

A) £1.50 per unit.
B) £1.25 per unit.
C) £3,000 plus £1.50 per unit.
D) £6,000 plus £0.75 per unit.

Correct Answer:

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