Stetson University teaches a large range of undergraduate courses. It is interested in determining the cost equation for the facilities cost as a function of student credit hours so that it an 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 2007
|
250,000
|
$500,000
|
|
Fall 2004
|
300,000
|
$530,000
|
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?