Mel owns a machine shop. In reviewing his utility bill for the last 12 months he found that his highest bill of \($2,400\) occurred in August when his machines worked 1,000 machine hours. His lowest utility bill of \($2,200\) occurred in December when his machines worked 500 machine hours.

Requirement 

1. Calculate

(a) the variable rate per machine hour and

(b) Mel’s total fixed utility cost.