Exercise 6A-1 (Static) 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 Month January February March April May June July August September October November December Occupancy- Electrical Days Costs 1,736 5 4,127 1,984 $ 4,207 2,356 $ 5,883 960 $ 2,857 366 $ 1,871 744 $ 2,696 2,108 $ 4,678 2.486 $ 5,148 848 $ 2,691 124 $ 1,568 720 $ 2,454 1,364 $ 3,529 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 electrony Faxed cost of electrony per occupancy day 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 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 aniwer. Any boxes left with a question mark will be automatically graded as incorrect.) Seasonal factors like winter or summer 2 Systematic factors like guests, switching off fans and lights Number of days present in a month 2 Fixed salary paid to hotel receptionist 2 Income taxes paid on hotel income Exercise 6A-3 (Static) Cost Behavior; High-Low Method (L06-10) Hol Chong Transport. Limited, operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 105,000 kilometers during a year, the average operating cost is 11.4 cents per kilometer. If a truck is driven only 70.000 kilometers during a year, the average operating cost increases to 13.4 cents per kilometer. Required: 1. Using the high-low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated with the feet of trucks 2. Express the variable and fixed costs in the form Yabx 3.1 a truck were driven 80,000 kilometers during a year, what total operating cost would you expect to be incurred? Complete this question by entering your answers in the tabs below. Required a Required Required 3 Using the high-low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated with the fleet of trucks. (Do not round your intermediate calculations. Round the Variable cost per kilometer to 3 decimal places) per kilometer Variable Fxnd cost por you Recured 2 > VP LUPUN U T M Exercise 6A-3 (Static) Cost Behavior: High-Low Method (L06-10) 5 10 Dos Hol Chong Transport, Limited, operates a fleet of delivery trucks in Singapore. The company has determined that if 105,000 kilometers during a year, the average operating cost is 11.4 cents per kilometer. If a truck is driven only 70.C during a year, the average operating cost increases to 13.4 cents per kilometer. Required: 1. Using the high-low method, estimate the variable operating cost per kilometer and the annual fixed operating.com the feet of trucks 2. Express the variable and fixed costs in the form Ya+bx 3. If a truck were driven 80,000 kilometers during a year, what total operating cost would you expect to be incurrec Complete this question by entering your answers in the tabs below. References Required 1 Requind 2 Required 3 Express the variable and fixed costs in the form Y = 3 + bx. (Do not round your intermediate calculations, Round the cost per kilometer to 3 decimal places.)