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

Question

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

Quizplus · Accepted Answer

The Answer of 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

The Following Data Pertains to Activity and Maintenance Costs for Two