Cullumber Company leases a machine that stuffs, seals, and stamps envelopes in one process. Cullumbers lease agreement calls for a base charge of $ 4,440 per year plus $ 0.22 for every envelope over 1,300 the machine processes per month.

a) What is the firms total annual cost for the lease if a total of 2,800 envelopes are processed each month?

b) What is the firm's total processing cost per envelope at a level of 2,800 envelopes processed each month (round to 3 decimal places)?