The Following Data Pertains to Activity and Maintenance Costs for Two

question 64

Multiple Choice

The following data pertains to activity and maintenance costs for two recent years: $\begin{array}{lrr}& \text { Year } 2& \text { Year } 1 \\ \text {Activity level in units } &12,000&8,000\\ \text {Maintenance cost } &£ 15,000 &£ 12,000\\\end{array}$

Using the high-low method, the cost formula for maintenance would be:

• A)£1.50 per unit.
• B)£1.25 per unit.
• C)£3,000 plus £1.50 per unit.
• D)£6,000 plus £0.75 per unit.

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Definitions:

Marketplace

An economic term describing a space or system where goods and services are exchanged between buyers and sellers.

Closed Places

Refers to confined or restricted spatial areas that may induce feelings of entrapment or claustrophobia.

Blood-Injection-Injury Type Phobias

Extreme fears of seeing blood or an injury or of receiving an injection or another invasive medical procedure, which cause a drop in heart rate and blood pressure and fainting.

Natural Environment Type Phobias

Fears associated with objects or situations in the natural environment, such as heights, water, or animals.