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Problem 1. The Jedi Hotel has been tracking its property repairs and maintenance costs (PR&M) over the past year. The results were as follows for
Problem 1. The Jedi Hotel has been tracking its property repairs and maintenance costs (PR&M) over the past year. The results were as follows for the year: The Jedi Hotel Activity (Room Nights Sold) 2050 2800 Month January February March April May June July August September October November December 3200 3800 4100 4350 4700 4900 4500 3300 2700 2400 PR&M Costs $6,555 $7,632 $8,023 $8,316 $9,295 $11,349 $11,839 $12,719 $11,643 $8,121 $7,534 $7,044 Required: Using the high-low two point method: 1. Calculate the variable cost per room night sold. 2. Calculate the monthly fixed PR&M cost. 3. Estimate the total amount that the Jedi Hotel will spend on PR&M cost when the forecasted activity level for the month is: 9784 room nights
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