$12$

The Cheyenne Hotel in Big Sky$,$ Montana, recorded Its total electrical costs and number of occupancy$-$days over the last year. An

occupancy$-$day represents a room rented for one day. The hotel's business is highly seasonal, wlth peaks occurring during the skl

season and In the summer.

Requlred:

Using the high$-$low method, estimate the fixed cost of electricity per month and the varlable cost of electricity per occupancy$-$day.

Note: Do not round your Intermedlate calculations. Round your Varlable cost answer to $2$ decimal places and Flxed cost

element answer to nearest whole dollar amount.

What other factors in addition to occupancy$-$days are likely to affect the varlation In electrical costs from month to month?

Note: You may select more than one answer. Single cllck the box with the questlon mark to produce a check mark for a correct

answer and clouble cllck the box with the questlon mark to empty the box for a wrong answer. Any boxes left with a questlon

mark will be automatically graded as incorrect.

$?$ Systematic factors like guests, switching off fans and lights.

$?$ Number of days present in a month.

$?$ Income taxes pald on hotel income.

$2$ Seasonal factors like winter or summer.

$?$ Fixed salary paid to hotel receptionist.