Given the following cost and activity observations for Smithson Company's utilities, use the high-low method to calculate Smithson's fixed costs per month. Round variable cost per unit to two decimal places in your calculations.

	Cost		Machine Hours
January	$52,200		20,000
February	75,000		29,000
March	57,000		22,000
April	64,000		24,500

a.

$2,530

b.

$22,800

c.

$1,600

d.

$50,600