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Please answer 1 and 2 The Lakeshore Hotel's occupancy-days and custodial supplies expense over the last seven months were as follows: Month March April May
Please answer 1 and 2
The Lakeshore Hotel's occupancy-days and custodial supplies expense over the last seven months were as follows: Month March April May June July August September Occupancy- Days 18,250 12,700 15,300 29,250 25,500 17,800 15,000 Custodial Supplies Expense $ 14,430 15,150 19,420 23,950 27,450 20,710 19,450 Occupancy-days are a measure of the overall activity at the hotel. For example, when a guest stays at the hotel for three days, it is counted as three occupancy-days. Required: 1. Using the high-low method, estimate a cost formula for custodial supplies expense. (Round the "Fixed cost" to the nearest dollar amount and "Variable cost" to 2 decimal places.) - Y= 2. Using the cost formula you derived above, what amount of custodial supplies expense would you expect to be incurred at an occupancy level of 14,000 occupancy-days? (In your computations, round "Variable cost per unit" to 2 decimal places and final answers to the nearest dollar amount.) Amount Variable cost Fixed cost Total costStep by Step Solution
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