1. C-Drive Components has collected the following production data for the past four months:

Units producedTotal cost

7,000$16,500

10,00022,500

8,50017,750

9,00021,000

If the high-low method is used, what is the monthly total cost equation?

Total cost = $2,500 + ($2.00 units produced)

Total cost = $3,750 + ($2.75 units produced)

Total cost = $1,500 + ($2.00 units produced)

Total cost = $500 + ($2.25 units produced)