Sherri Hess, the manager of the Illini Hotel, desires to know the breakdown of the electric costs between variable and fixed categories. She provides you with the following information:

Month	Electric Expense	Occupancy Percentage
January	$6,200	62%
April	$6,600	68%
August	$7,200	78%
December	$5,500	50%

Use the high/low point method to:

Determine the variable costs per 1 percent of occupancy.

Estimate the fixed costs per month.

What is the estimated total electric expense at 62 percent occupancy?

Why does this differ from the $6,200 shown for January?