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Exercise 5 A - 1 ( Algo ) High - Low Method [ LO 5 - 1 0 ] The Cheyenne Hotel in Big Sky
Exercise AAlgo HighLow Method LO The Cheyenne Hotel in Big Sky Montana, recorded its total electrical costs and number of occupancydays over the last year. An occupancyday represents a room rented for one day. The hotel's business is highly seasonal, with peaks occurring during the ski season and in the summer. Month OccupancyDays Electrical Costs January $ February $ March $ April $ May $ June $ July $ August $ September $ October $ November $ December $ Required: Using the highlow method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancyday. Note: Do not round your intermediate calculations. Round your Variable cost answer to decimal places and Fixed cost element answer to nearest whole dollar amount. What other factors in addition to occupancydays are likely to affect the variation in electrical costs from month to month? Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect. check all that apply Systematic factors like guests, switching off fans and lights.unanswered Number of days present in a month. Income taxes paid on hotel income.unanswered Seasonal factors like winter or summer.unanswered Fixed salary paid to hotel receptionist.unansweredThe Cheyenne Hotel in Big Sky Montana, recorded its total electrical costs and number of occupancydays over the last year. An occupancyday represents a room rented for one day. The hotel's business is highly seasonal, with peaks occurring during the ski season and in the summer. Required: Using the highlow method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancyday. Note: Do not round your intermediate calculations. Round your Variable cost answer to decimal places and Fixed cost element answer to nearest whole dollar amount.
Exercise AAlgo HighLow Method LO
The Cheyenne Hotel in Big Sky Montana, recorded its total electrical costs and number of occupancydays over the last year. An occupancyday represents a room rented for one day. The hotel's business is highly seasonal, with peaks occurring during the ski season and in the summer.
Month OccupancyDays Electrical Costs
January $
February $
March $
April $
May $
June $
July $
August $
September $
October $
November $
December $
Required:
Using the highlow method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancyday.
Note: Do not round your intermediate calculations. Round your Variable cost answer to decimal places and Fixed cost element answer to nearest whole dollar amount.
What other factors in addition to occupancydays are likely to affect the variation in electrical costs from month to month?
Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.
check all that apply
Systematic factors like guests, switching off fans and lights.unanswered
Number of days present in a month.
Income taxes paid on hotel income.unanswered
Seasonal factors like winter or summer.unanswered
Fixed salary paid to hotel receptionist.unansweredThe Cheyenne Hotel in Big Sky Montana, recorded its total electrical costs and number of occupancydays over the last year. An
occupancyday represents a room rented for one day. The hotel's business is highly seasonal, with peaks occurring during the ski
season and in the summer.
Required:
Using the highlow method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancyday.
Note: Do not round your intermediate calculations. Round your Variable cost answer to decimal places and Fixed cost
element answer to nearest whole dollar amount.
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