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please solve both the questions in the photo. The Lakeshore Hotel's occupancy-days and custodial supplies expense over the last seven months were as follows: Occupancy-days
please solve both the questions in the photo.
The Lakeshore Hotel's occupancy-days and custodial supplies expense over the last seven months were as follows: 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 "Voriable cost" to 2 decimal places.) 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 14,200 occupancy-days? (In your computations, round "Variable cost per unit" to 2 decimal places and final answers to the nearest dollar amount.) Step by Step Solution
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