The Alpine Hotel near Kosciuszko National Park in NSW, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented for one day. The hotels business is highly seasonal, with peaks occurring during the ski season and in the summer.

Month	Occupancy-Days	Electrical Costs
January	1,736	$4,127
February	1,904	$4,207
March	2,612	$5,576
April	960	$2,857
May	127	$1,476
June	744	$2,696
July	2,108	$4,670
August	2,406	$5,148
September	840	$2,691
October	360	$1,871
November	720	$2,454
December	1,364	$3,529

Required:

1. Using the high-low method, estimate the variable cost of electricity per occupancy-day and the fixed cost of electricity per month. Round off the variable cost to the nearest whole cent and the fixed cost to the nearest whole dollar. (4 marks)
2. What other factor in addition to occupancy-days is likely to affect the variation in electrical costs from month to month? (1 marks)