The Following Data Pertains to Activity and Maintenance Costs for Two

Multiple Choice

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