Need business and finance help for using the high low method, with student credit hours as the activity driver
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Professional University teaches a large range of undergraduate courses. It is interested in determining the cost equation for the facilities cost as a function of student credit hours so that it an more accurately budget its facilities costs as enrollment grows. Information for the high and low cost semesters and volumes for last 5 years appears below
| Semester | Student Credit Hours | Facilities Cost |
| Spring 2007 | 250,000 | $500,000 |
| Fall 2004 | 300,000 | $530,000 |
Using the high low method, with student credit hours as the activity driver, what is the equation for facilities cost (FC) as a function of student credit hours?
Question 10 options:
|
FC = $350,000 + $0.60 / student credit hour |
|
FC = -$585,100 + $1.67 / student credit hour |
|
FC = $1.77 / student credit hour |
|
FC = $2 / student credit hour |
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