Question
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 Month January Occupancy-Days Costs 4.260 $15.082 February 3.650 $14,112 March 3.160 $ 13.272 April 2,150 $ 9.090 May 2.260 $9.492 June 1.450 $ 6.090 July 3.180 $ 13.356 August 3.750 $14.532 September 2.220 $9,324 October 1.580 $6.636 November 1,690 $7.098 December 2.750 $11.550 es 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.) Vanable cost of electricity Fixed cost of electricity per occupancy-day per month
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