Month January April August December Electronic ExperGecupancy Percentage 6,200 62 6,600 68 7,200 78 5,500 50 Using the highllow two point method to: 1 Determine the variable cost per 1poercent of occupancy 2 Estimate the fixed costs per month 3 What is the estimated total electric expense at 62 pecent of ocoupancy? ANSWER Month August December High Low Difference 78 Electronic Expenses Occupancy Percentage 7,200 5,500 1,700 50 28 1 Variable cost per 17. of occupanoy = 61 2 Total variable cost of electric expense for December = Total fixed cost of electric expense for December = 3,035.71 2,454.29 Total variable cost of eleotrio expense for August = Total fixed cost of electric expense for August = 4,735.71 2,454.29 3 Using the fixed cost for December as the total fixed cost for estimation Total variable cost of electric expense at 62% occupancy: Total fixed cost of electric expense at 62% occupanoy Estimated total electric expense at 62% occupanoy =