The Ladder Company Wants to Develop a Cost Estimating Equation

Multiple Choice

The Ladder Company wants to develop a cost estimating equation for its monthly cost of electricity. It has the following data: $\begin{array}{crr}\text { Month } & \text { Cost of Electricity } & \text { Direct Labor Hours }\\\hline\text { February } & \$ 8,100 & 750 \\\text { May } & 9,000 & 850 \\\text { August } & 10,200 & 1,000 \\\text { November } & 8,700 & 800\end{array}$ Using the high-low method, which of the following is the best equation?

A) Y = $900 + $12.00X
B) Y = $900 + $8.40X
C) Y = $1,800 + $8.40X
D) Y = $2,400 + $8.40X