EXERCISE 6A-1 High-Low Method LO6-10 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 day. The hotel's business is highly seasonal, with peaks occurring during the ski season and in for one 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 APPENDIX 6A: EXERCISES 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: 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. What other factors in addition to occupancy-days are likely to affect the variation in electrical costs from month to month?

APPENDIX 6A: EXERCISES EXERCISE 6A-1 High-Low Method LO6-10 The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the botel 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. equired: 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. What other factors in addition to occupancy-days are likely to affect the variation in electrical costs from month to month