.Professional University teaches a large range of undergraduate courses. It is interested in determining the cost equation for the facilities cost as function of student credit hours so that it an more accurately budget its facilities cost as enrollment grows. Information for the high and lost cost semesters and volumes for the last 5 years appears below:
Using the high low method, with student credit hours as the activity driver, what is the equation for the facilities cost (FC) as a function of the student credit hours?
a. FC = $350,000 + $0.60 / student credit hour
b. FC = $585,100 + $1.67 / student credit hour
c. FC = $1.77 / student credit hour
d. FC = $2 / student credit hour
