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Donaldson Bed and Breakfast has six available rooms to rent to tourists visiting Niagara Falls. Guests enjoy a comfortably appointed room with an attached bathroom

Donaldson Bed and Breakfast has six available rooms to rent to tourists visiting Niagara Falls. Guests enjoy a comfortably appointed
room with an attached bathroom and the owners provide a hearty breakfast each morning. The owners have calculated that their
typical occupancy rate is 80% per month. The cost to rent each room is $65 per occupied room per day assuming a 30-day month.
Some of this cost is fixed and some variable. During the month of June, the occupancy rate went down to 60% and the total cost to
operate that month was $7,650.
Required:
Using the high-low method, estimate the variable and fixed cost elements of the bed and breakfast's operation in a typical month.
Note: Do not round your intermediate calculations. Round the "Variable cost per room" to 2 decimal places.
Express the variable and fixed costs in the form Y=a+bx.
Note: Do not round your intermediate calculations. Round the "Variable cost per room" to 2 decimal places.
2. Express the variable and fix cost in the form Y= a + bX. Note do not round your intermediate calculations. Round the variable cost per room to 2 decimal places. 3. If the occupancy rate went up to 90% in a particular month, what total cost would you expect to be incurred in that month? Note: do not round intermediate calculations.
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