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 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	3,400		$	10,234
February	3,280		$	10,052
March	4,370		$	11,605
April	1,950		$	6,825
May	680		$	2,380
June	1,960		$	6,860
July	4,040		$	11,060
August	4,080		$	11,100
September	2,240		$	7,602
October	1,030		$	3,605
November	1,460		$	4,634
December	2,700		$	8,974

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.)

2. What other factors in addition to occupancy-days are likely to affect the variation in electrical costs from month to month?(You may select more than one answer.)

Systematic factors like guests, switching off fans and lights.

Number of days present in a month.

Income taxes paid on hotel income.

Seasonal factors like winter or summer.

Fixed salary paid to hotel receptionist.