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1. Using high-low method, estimate a cost formula for custodial supplies expense. 2. Using the cost formula tou derived above, what amount of custodial supplies
1. Using high-low method, estimate a cost formula for custodial supplies expense.
Occupancy-days are a meature of the overall activity at the hotet. For example, when a quest stays at the hotet lor three days, it is counted as three occupancy-days. Required: 1. Using the high-low method, estimate a cost formula for custodial supplies expense. (Round the "Fixed cost" to the nearest deilar amount and "Variable cost" to 2 decimal places.) 2. Using the cost formula you derlved above, what amount of custodial supplies expense would you expect to be incurred at an occupancy level of 14.000 occupancy days? (In your computations, round "Variable cost per unit" to 2 decimal places and final answers to the nearest doller amount.) 2. Using the cost formula tou derived above, what amount of custodial supplies expense would you expect to be incurred at an occupancy level of 14,000 occupancy-days?
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