Princeton Offers a Large Range of Undergraduate Courses Using the High-Low Method, with Student Credit Hours as the Interested

question 162

Multiple Choice

Princeton offers a large range of undergraduate courses.The University is interested in determining the cost equation for the facilities cost as a function of student credit hours so that it can more accurately budget its facilities costs as enrollment grows.Information for the high and low cost semesters and volumes for last 5 years appears below: $$\begin{array} { c c c } \text { Semester } & \text { Student Credit Hours } & \text { Facilities Cost } \\\text { Spring 2016 } & 160,000 & \$ 750,000 \\\text { Fall 2017 } & 140,000 & \$ 660,000\end{array}$$ Using the high-low method, with student credit hours as the activity driver, what is the equation for facilities cost (FC) as a function of student credit hours?

• A)FC = $4.50 / student credit hour
• B)FC = $1.14 / student credit hour
• C)FC = $30,000 + $4.50 / student credit hour
• D)FC = $568,182 + $0.22 / student credit hour

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