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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. Month Occupancy-Days Electrical Costs January 4,260 February 3,650 $15,082 $14,112 March 3,160 $13,272 April 2,150 $ 9,030 May 2,260 June 1,450 3,180 $ 9,492 $ 6,090 $13,356 July August 3,750 $14,532 September 2,220 $ 9,324 October 1,580 $ 6,636 November December 1,690 2,750 $ 7,098 $11,550 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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