Activity level $($units$)$

$15,000$

$12,000$

Utility cost

$

$24,750$

$

$21,000$

Utility cost is a mixed cost with both fixed and variable components. Using the high$-$low method, the cost formula for utility cost is:

Question $20$Select one:

a$.$

Y $=$ $$6,000+$ $$1\mathrm{.}25$ X

b$.$

Y $=$ $$1\mathrm{.}75$ X

c$.$

Y $=$ $$3,750+$ $$1\mathrm{.}75$ X

d$.$

Y $=$ $$1\mathrm{.}65$ X