• Premier Hotels wants to understand its housekeeping costs in relation to the number of room nights.
• Data Collected:
  • January: Total Costs: $50,000, Room Nights: 1,000
  • December: Total Costs: $80,000, Room Nights: 1,500
• Tasks:
  • Use the High-Low Method to calculate the variable cost per room night and fixed costs.
  • Develop a cost equation.
  • Predict the total costs for 2,000 room nights.
  • Discuss strategies for managing housekeeping costs during peak and off-peak periods.