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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 January Occupancy-Days 3,030 Electrical Costs $ 9,044 February 3,080 $ 9,234 March 3,980 $11,913 April 1,630 $ 6,194 May 1,270 $ 4,826 June 2,110 $ 8,018 July 650 August 3,690 $ 2,470 $11,552 September 1,960 $ 7,448 October 4,410 $12,998 November 1,600 December 2,230 $ 6,080 $ 8,474 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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