High Low Method Assignment | Custom Assignment Help
September 9th, 2019
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?
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 hou
