P7.8 A hotel wishes to analyze its electricity cost in its rooms department in terms of fixed and variable elements. Monthly income statements show that during its busiest and slowest months, cost and rooms occupied information is as follows:

Rooms Cost Rooms Sold Busiest $2,600 2,400 Slowest 2,000 1,200 Use the high–low method to calculate the following:

a. Variable cost per room occupied

b. Total variable cost for the busiest and the slowest month

c. Total fixed cost per month