Exercise 6A-1 (Algo) High-Low Method [L06-10) 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 Costa January 4,260 $ 15,082 February 3,650 $ 14,112 March 3,160 $ 13,272 April 2,150 $ 9,030 May 2,260 $ 9,492 1,450 $ 6,090 July 3,180 $ 13,356 August 3,750 $ 14,532 September 2,220 $ 9,324 October 1,580 $ 6,636 November 1,690 $ 7,098 December 2,750 $ 11,550 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.) June Answer is complete but not entirely correct. Variable cost of electricity $ 3.67 per occupancy day November December 1,690 2,750 $ 7,098 $ 11,550 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.) Answer is complete but not entirely correct. Variable cost of electricity $ 3.67 per occupancy-day Fixed cost of electricity $ 770 per month 2. 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 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.) Systematic factors like guests, switching off fans and lights. Number of divs present in a month 2. 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 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.) Systematic factors like guests, switching off fans and lights Number of days present in a month Income taxes paldon hotel income. Seasonal factors like winter or summer Fixed salary paid to hotel receptionist
