Answer the Following Questions Using the Information Below:
the Yeppoon

Multiple Choice

Answer the following questions using the information below:
The Yeppoon Company uses the high-low method to estimate its cost function.The information for 2018 is provided below:
$$\begin{array} { l c c } & \text { Machine-hours } & \text { Costs } \\\text { Highest observation of cost driver } & 2000 & \$ 225000 \\\text { Lowest observation of cost driver } & 1000 & \$ 125000\end{array}$$
-What is the constant for the estimating cost equation?

A) $0
B) $225 000
C) $25 000
D) $125 000