The following data pertains to activity and utility costs for the 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, the cost formula for utilities is:

$1.50 per unit

$8,000 plus $0.50 per unit

$1.25 per unit

$6,000 plus $0.75 per unit