Answered step by step
Verified Expert Solution
Question
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
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 $5,100 $1,450 Month January 2,620 February 580 March 4,080 $ 6,575 April 2,000 $5,000 May 2,880 June 1,750 July 3,430 August 940 $5,750 $4,375 $ 5,965 $2,350 September 1,570 $ 3,925 October 4,320 $ 7,060 November 1,210 $3,025 December 2,740 Required: $5,400 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 Food cost of electricity per occupancy-day per month
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started