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

• $2,000

• $4,500

• $3,000

• $4,000