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The following data pertain to activity and utilities costs for two recent years: Year 2 Year 1 Activity Level in Units 10,000 6,000 Utilities Cost
The following data pertain to activity and utilities costs for two recent years:
| Year 2 | Year 1 | |
| Activity Level in Units | 10,000 | 6,000 |
| Utilities Cost | $34,000 | $22,000 |
Assuming the variable cost per unit is $3.00, use the high-low method to determine the fixed cost per year.
Multiple Choice
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$2,000
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$4,500
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$3,000
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$4,000
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