The Cheyenne Hotel in Big Sky, Montana, 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 out for one day. The hotels business is highly seasonal, with peaks occurring during the ski season and in the summer.

Costs $6,750 $7,410 $7,905 $5,520 $2,250 $5,490 $8,190 $5,100 $8,410 January February 2,830 3,340 3,650 1,840 750 1,830 3,890 1,700 4,060 2,260 1,350 April August September $4,050 870 Required 1. Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy-day. (Do not round your intermediate calculations. Round your Variable cost answer to 2 decimal places and Fixed cost element answer to nearest whole dollar amount) Occupancy Electrical Days Costs High activity level Low activity level Variable cost per occupancy-day Fixed cost element What other factors other than occupancy-days are likely to affect the variation in electrical costs from month to month? (You may select more than one answer. Boxes left with question marks will 2. graded as incorrect.) ?Income taxes paid on hotel income. ?systematic factors like guests, switching off fans and lights. Number of days present in a month 1 Seasonal factors like winter or summer