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Could someone amawer for me this question. Thank you inadvance EXERCISE 3-3 High-Low Method (L03) The Cheyenne Hotel in Big Sky, Montana, has accumulated records
Could someone amawer for me this question. Thank you inadvance
EXERCISE 3-3 High-Low Method (L03) The Cheyenne Hotel in Big Sky, Montana, 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. . Month January February March April May June July August September October November December Occupancy-Days 1,736 1,904 2,356 960 360 744 2,108 2,406 840 124 720 1,364 Electrical Costs $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 other factors other than occupancy-days are likely to affect the variation in electrical costs from month to month Step by Step Solution
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