The Following Data Pertain to Activity and Utilities Costs for Two

Multiple Choice

The following data pertain to activity and utilities costs for two recent years:
$\begin{array}{|l|r|r|}\hline & \text { Year 2 } & \text { Year 1 } \\\hline \text { Activity Level in Units } & 10,000 & 6,000 \\\hline \text { Utilities Cost } & \$ 12,000 & \$ 9,000 \\\hline\end{array}$
Using the high-low method,what is the cost formula for utilities?

A) $1.20 per unit.
B) $1.50 per unit.
C) $3,000 plus $3.00 per unit.
D) $4,500 plus $0.75 per unit.