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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

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 540 $ 1,620
February 3,810 $ 8,352
March 4,100 $ 8,736
April 1,730 $ 5,190
May 3,520 $ 7,968
June 1,320 $ 3,960
July 3,420 $ 7,668
August 4,120 $ 8,780
September 1,610 $ 4,830
October 830 $ 2,490
November 1,420 $ 4,260
December 2,320 $ 6,960

Required:

1. Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy-day.

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