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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 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 hotel's business is highly seasonal, with peaks occurring during the ski season and in the summer. Occupancy- Days Electrical Costs Month January 3,290 $ 16,450 February 3,160 $ 15,800 March 1,800 $ 9,000 April 4,430 May 970 $ 18,500 $ 4,850 June 1,650 $ 8,250 July 4,150 $ 18,020 August 4,160 $ 18,070 September 2,050 $ 10,250 October 1,110 $ 5,550 November December 780 2,810 $ 3,900 $ 14,050 Required: 1. Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy-day. Note: 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. Variable cost of electricity Fixed cost of electricity per occupancy-day per month
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