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 hotel's business is highly seasonal, with peaks occurring during the ski season and in the summer.

Month	Occupancy- Days	Electrical Costs
January	3,400	$	9,536
February	4,150	$	10,180
March	3,080	$	9,184
April	2,230	$	7,136
May	1,570	$	5,024
June	1,910	$	6,112
July	3,880	$	9,997
August	3,830	$	9,904
September	2,060	$	6,592
October	1,940	$	6,208
November	1,050	$	3,360
December	2,710	$	8,168

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 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 be graded as incorrect.)

	Systematic factors like guests, switching off fans and lights.
	Income taxes paid on hotel income.
	Seasonal factors like winter or summer.
	Number of days present in a month.