Exercise 5A-1 (Algo) High-Low Method [LO5-10] 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 for one day. The hotel's business is highly seasonal, with peaks occurring during the ski season and in the summer. Occupancy- Electrical Month Days Costs January 2,640 $ 13, 200 February 2,860 $ 14,300 March 980 $ 4,900 April 2,420 $ 12, 100 May 2, 090 $ 10 , 450 June 4,470 $ 18, 860 July 4, 020 $ 17, 160 August 3,940 $ 16, 760 September 1, 630 $ 8, 150 October 1, 090 $ 5,450 November 1, 390 $ 6,950 December 2,910 $ 14,550 Required: 1. Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy-day. (Do not round your intermediate calculations. Round your Variable cost answer to 2 decimal places and Fixed cost element answer to nearest whole dollar amount.) Variable cost of electricity per occupancy-day Fixed cost of electricity per month2. What other factors in addition to occupancy-days are likely to affect the variation in electrical costs from month to month? [You may select more than one answer. Single click the box with the question mark to produce a checlr marl: for a correct answer and double click the box with the question mark to empty the ho: for a wrong answer. Any holes left with a question mark will be automatically graded as incorrect} D Systematic factors like guests, switching off fans and lights. Number of days present in a month. Income taxes paid on hotel income. Seasonal factors like winter or summer. Fixed salaryr paid to hotel receptionist. ( Prev 7 of 7 III Next