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Cu 1: (3im) Martin owns a machine shop. In reviewing his utility bill for the last 12 months, he found that his highest bill of
Cu 1: (3im)
Martin owns a machine shop. In reviewing his utility bill for the last 12 months, he found that his highest bill of $2,800 occurred in August when his machines worked 1,400 machine hours. His lowest utility bill of $2,600 occurred in December when his machines worked 900 machine hours.
Requirements:
- Calculate (a) the variable rate per machine hour and (b) Martins total fixed utility cost.
- Show the equation for determining the total utility cost for Martins
- If Martins anticipates using 1,200 machine hours in January, predict his total utility bill using the equation from the requirement 2.
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