Burger Company Ltd has observed that at an activity level of 5000 units the cost for maintenance is $6500, and at 10 000 units the maintenance cost is $9000. Using the high-low method, the cost formula for maintenance is:

Select one:

1.

$4000 and $.50/unit

2.

$3500 and $.50/unit

3.

$3500 and $.60/unit

4.

$1.30/unit

5.

$.90/unit