1. Baker Corporation uses the high-low method to analyze cost behavior. You as controller have determined that machine hours best explain the company's utilities cost. The company's relevant range of activity varies from a low of 600 machine hours to a high of 1,100 machine hours, with the following data being available for the first six months of the year:

Month	Utilities	Machine Hours
January	$8,700	800
February	8,360	720
March	8,950	810
April	9,360	920
May	9,625	950
June	9,150	900

1. Determine the cost equation.
2. What is the variable cost per unit?
3. What are the total fixed costs?
4. If there are 980 machine hours, what will utility costs be projected to be?