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Please solve this, exactly like its posted. Please no abbreviations and incomplete answers, with as much explanation as possible. THANK YOU Exercise 2-14 High-Low Method:
Please solve this, exactly like its posted. Please no abbreviations and incomplete answers, with as much explanation as possible. THANK YOU
Exercise 2-14 High-Low Method: Predicting Cost [LO2-4, LO2-5] The Lakeshore Hotel's guest-days of occupancy and custodial supplies expense over the last seven months were: Custodial Guest Days Supplies Month of Occupancy Expense March 8,000 12,800 April 7,500 12,400 10,000 14,400 May 11,500 15,600 June July 13,500 17,200 August 12,500 16,400 September 10,000 14,400 Guest-days is a measure of the overall activity at the hotel. For example, a guest who stays at the hotel for three days is counted as three guest-days Required: 1. Using the high-low method, estimate a cost formula for custodial supplies expense. (Round the Variable cost per guest-day to 2 decimal points.) Custodial Guest-Days Supplies Expense High activity level Low activity level Change per guest-day Variable cost per guest-day Fixed cost per monthStep by Step Solution
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