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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 2,830 $6,750 February 3,340 $ 7,410 March 3,650 $ 7,905 April 1,840 $ 5,520 May June 750 $2,250 1,830. $ 5,490 July 3,890 $8,190 August 1,700 $ 5,100 September 4,060 $ 8,410 October 2,260 $ 6,780 November 1,350 $ 4,050 int December 290 $870 rences 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.) Variable cost of electricity Fixed cost of electricity per occupancy-day per month
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