Princeton offers a large range of undergraduate courses. TheUniversity is interested in determining the cost equation for thefacilities cost as a function of student credit hours so that it can moreaccurately budget its facilities costs as enrollment grows. Informationfor the high and low cost semesters and volumes for last 5 yearsappears below:SemesterSpring 2016Fall 2017Student Credit HoursFacilities Cost160,000$750,000140,000$660,000Using the high-low method, with student credit hours as the activitydriver, what is the equation for facilities cost (FC) as a function of studentcredit hours?FC $4.50/ student credit hourO FC = $1.14 / student credit hourO FC $30,000+ $4.50/ student credit hourO FC $568,182 + $0.22 / student credit hour◄ PreviousMAR18tvCNext▸

The high-low method is used to differentiate the mixed cost. Mixed cost is the combination of fixed…

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: Semester Student Credit Hours Facilities Cost Spring 2016 Fall 2017 160,000 $750,000 140,000 $660,000 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?

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: Semester Student Credit Hours Facilities Cost Spring 2016 Fall 2017 160,000 $750,000 140,000 $660,000 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?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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