The following data pertains to activity and maintenance costs of Dubai Company for two recent years.

Activities	Year 2	Year1
Activity Level in Units	12000 unites	8000 unites
Maintenance cost	$15000	$12000

Required:

1. Using the high-low method, calculate the cost formula for the company maintenance.

2. Prepare Dubai Company contribution format income statement if the company selling price per a per a unit is $3 and the level of activity is 10000 units during the period.

Answer