The Following Data Pertains to Activity and Utility Costs for Two

Multiple Choice

The following data pertains to activity and utility costs for two recent years: $\begin{array}{lrr} & \text { Year 2 } & \text { Year 1 } \\\text { Activity level in units } & 10,000 & 6,000 \\\text { Utilities cost observed } & \$ 12,000 & \$ 9,000\end{array}$ Using the high-low method, the cost formula for utilities is:

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