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 cost as enrollment grows. Information for the high and low cost semesters and volumes for the 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:

a) FC = $350,000 + $0.60 / student credit hour

b) FC = $585,100 + $1.67 / student credit hour

c) FC = $1.77 / student credit hour

d) FC = $2 / student credit hour