The following data pertains to activity and maintenance cost for two recent periods: Activity level (units) 8,000 7,000Maintenance cost$34,000 $31,500Maintenance cost is a mixed cost with both fixed and variable components. Using the high-low method, the cost formula for maintenance cost is: (Round your intermediate calculations to 2 decimal places.)
A. Y = $4.50 X
B. Y = $2,500 + $4.25 X
C. Y = $4.25 X
D. Y = $14,000 + $2.50 X
Answer: D
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Answer the following statement true (T) or false (F)
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