Hook Company Wants to Develop a Cost Estimating Equation for Its

Multiple Choice

Hook Company wants to develop a cost estimating equation for its monthly cost of electricity. It has the following data: $$\begin{array} { c c c } \text { Month } & \text { Cost of Electricity } & \text { Direct labour Hours } \\\text { January } & £ 8,100 & 750 \\\text { April } & 9,000 & 850 \\\text { July } & 10,200 & 1,000 \\\text { October } & 8,700 & 800\end{array}$$ 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