The equation for facilities cost (fc) as a function of student credit hours is 350000 + .60 per credit hour
<h3>How are facility costs calculated?</h3>
Ongoing operating expenses for the facility consist of property taxes, utilities, site maintenance and landscaping, insurance, and facility maintenance and repair costs. Add up the total amount spent on each expense category to determine its cost. Breaking down building costs reveals how much it really costs to run a business. More importantly, there's information about potential savings. Examples include building and equipment depreciation, operation and maintenance, administrative assistance, library services, and student services.
The variable cost per student credit hour = change in cost/change in credit hours
= [530000 - 500000] / [300000 - 25000]
= 30000 / 50000= $ .60 per credit hour
Fixed cost at highest activity = 530000 - [300000 * 0.6]
= 530000 - 180000
= 350000 Cost function
= 350000 + .60 per credit hour
To learn more about facility cost, visit: brainly.com/question/28336283
#SPJ4