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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 belowSemesterStudent Credit HoursFacilities CostSpring 2007250,000$500,000Fall 2004300,000$530,000Using 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 hourFC = -$585,100 + $1.67 / student credit hourFC = $1.77 / student credit hourFC = $2 / student credit hour
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