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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 Month January Occupancy- Days 3,230 $ 10,194 February 3,100 $ 9,888 March 4,170 $ 12,266 April 2,110 $ 7,807 May 1,100 June 950 July 3,190 $ 4,070 $ 3,515 $ 10,046 August 2,080 $ 7,696 September 4,200 $ 12,290 October 1,060 $ 3,922 November 1,670 $ 6,179 December 2,830 $ 9,241 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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