The following data pertains to activity and utility costs for the two recent years:
____________________________Year 2 Year 1
Activity level in units.....................12,000...................8,000
Utilities Cost.................................$15,000...............$12,000
Using the high-low method, the cost formula for utilities is:
a. $1.50 per unit
b. $8,000 plus $0.50 per unit
c. $1.25 per unit
d. $6,000 plus $0.75 per unit