HIGH LOW METHOD The BEST HOSPITAL has accumulated records of the total electrical costs of the facilities and number of patient days over the last year. An patient-day represents a room charge out for one day. The Hospitals services is highly seasonal, with peaks occurring during the cold season and in the rain season.

Month - 2017	Patient-days	Electrical costs
Jan	3,050	$ 9,257
Feb	2,899	8,650
March	3,534	9,986
April	1,840	6,022
May	740	2,289
June	1,416	3,791
July	3,662	9,264
Aug	3,908	10,112
Sep	1,560	3,707
Oct	986	2,912
Nov	1,880	3,352
Dec	2,546	7,196

REQUIRED

1. Using the HIGH-LOW METHOD, estimate the FIXED COSTS of electricity per month and the VARIABLE COST of electricity per patient-day. Determine the COST FUNCTION to projected the cost of electricity for the first semester of 2018.

2.2. Using the cost formula and projected the electrical costs for the followings months: year 2018 ( First Semester) Month - 2018 Occupancy days Electrical costs Jan 4,205 $ Feb 4,800 March 5,185 April 2,750 May 900 June 1,550