BRIEF EXERCISE 3-2 High-Low Method CC10, 11) The Royal Canadian Lodge in Banff, Alberta, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented out for one day. The hotel's business is highly seasonal, with peaks occurring during the ski season and in the summer Months Occupancy Days Electrical Costs January February March ... April May... June.. July .. August....... September... October ... November.. December ...... 1,736 1.904 2,356 960 360 744 2,108 2,406 840 124 720 1,364 $4,127 4.207 5.083 2.857 1.871 2,696 4,670 5,148 2.691 1.588 2.454 3.529 . . Required: 1. Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy-day. Round off the fixed cost to the nearest whole dollar and the variable cost to the nearest whole cent. 2. What factors other than occupancy-days are likely to affect the monthly variation in electrical costs