Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

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

image text in transcribedimage text in transcribed

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 3,290 $ 16,450 February 3,160 $ 15,800 March 1,800 $ 9,000 April 4,430 $ 18,500 May 970 $ 4,850 June 1,650 $ 8,250 July 4,150 $ 18,020 August 4,160 $ 18,070 September 2,050 $ 10,250 October 1,110 $ 5,550 November 780 2,810 $ 3,900 $ 14,050 December 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental Accounting Principles

Authors: John J Wild, Ken Shaw

25th Edition

9781260247985

Students also viewed these Accounting questions

Question

(7b-4c-1)-2 (2b3c-2)5 Simplify.

Answered: 1 week ago