Question
Accounting homework please help....? The Lakeshore Hotel's guest-days of occupancy and custodial supplies expense over the last seven months were: Month .....................Guest-Days of Occupancy ....................
The Lakeshore Hotel's guest-days of occupancy and custodial supplies expense over the last seven months were:
Month .....................Guest-Days of Occupancy .................... custodial supplies expense
March ...............................4,000....... $7,500
April.................................. 6,500...................................... $8,250
May ................................. 8,000.................................. $10,500
June................................... 10,500................................ $12,000
July.................................... 12,000............................... $13,500
August................................ 9,000 ................................ $10,750
September......................... 7,500...................................... $9,750
*Guest-days is a measure of the overall activity at the hotel. For example, a guest who stays at the hotel for three days is counted as three guest-days.
1. Using the high-low method, estimate a cost formula for custodial supplies expense where X is the number of guest-days.
y=________________+$______________x
2. Using the cost formula you derived above, what amount of custodial supplies expense would you expect to be incurred at an occupancy level of 11,000 guest-days?
variable cost $________________
Fix cost $________________
total cost $_______________
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