Horizon BP in Antelope Park, Alaska, has noticed that utility bills are substantially higher when the average monthly temperature is colder. The only thing in the shop that uses natural gas is the furnace. Because of prevailing low temperatures, the furnace is used every month of the year (though less in the summer months and very little in August). Everything else in the shop runs on electricity, and electricity use is fairly constant throughout the year. For a year, Horizon has been recording the average daily temperature and the cost of its monthly utility bills for natural gas and electricity.

Required
Use the high-low method to estimate utility cost for the upcoming months of January and February. The forecast for January is a near record average temperature of 5oF; temperatures in February are expected to average 40oF.

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Average Temperature Utility Cost January February March April May June July August September October November December 31oF 41 43 46 50 53 60 50 40 30 $760 629 543 410 275 233 220 210 305 530 750 870