The Valuation Department of a large firm of surveyors wishes to develop a method of predicting its total costs in a period. The following past costs have been recorded at two activity levels.

Number of valuations Total cost

(V) (TC)

Period 1 420 82,200 Period 2 515 90,275 The total cost model for a period could be represented as follows.

A TC = $46,500 + 85V B TC = $42,000 + 95V C TC = $46,500 – 85V D TC = $51,500 – 95V