• RiverView Hotels wants to analyze its utility costs related to the number of occupied room nights.
• Data Provided:
  • Low Occupancy Month: Total Costs: $20,000, Occupied Room Nights: 1,000
  • High Occupancy Month: Total Costs: $30,000, Occupied Room Nights: 1,500
• Tasks:
  • Apply the High-Low Method to calculate the variable cost per occupied room night and fixed costs.
  • Develop a cost equation.
  • Predict the total costs for 2,000 occupied room nights.
  • Discuss strategies for reducing utility costs during peak occupancy periods.