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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 12,000 8,000 Utilities Cost

The following data pertain to activity and utilities costs for two recent years: Year 2 Year 1 Activity Level in Units 12,000 8,000 Utilities Cost $15,000 $12,000 Using the high-low method, what is the variable cost per unit for utilities? a. $1.25 per unit. b. $1.50 per unit. c. $1.33 d. $0.75 per unit

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