Managerial Accounting

Q5. The owner of Hamilton hotel would like a cost formula that relates the hotel maintenance cost for a month to a number of occupancy days for that month. Using high low method to establish the fixed and variable components of maintenance costs, Find out Variable cost, Fixed cost and express as Y=F + Vx (10 marks) Month Occupancy days Maintenance cost January 5600 $7900 February 7100 $8500 March 5000 $7400 April 6500 $8200 May 7300 $9100 June 8000 $9800 July 6200 $7800