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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 Electrical Costs $16,450 $ 15,800 $9,000 $18,500 $4,850 Month Occupancy-Days January 3,290 February 3,160 March 1,000) April 4,430 May 970 June 1,650 $ 8,250 July 4,150 $18,020 August 4,160 $ 18,070 September 2,050 $ 10,250 October 1,110 November December 780 2,010 Required: $ 5,550 $3,900. $ 14,050 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.) Variable cost of electricity Fixed cost of electricity per occupancy-day per month
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