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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. Electrical Costs $ 1,620 Month January Occupancy-Days 540 February 3,810 $8,352 March 4,100 $8,736 April 1,730 $5,190 May 3,520 $7,968 June 1,320 $ 3,960 July 3,420 $ 7,668 August 4,120 $8,780 September 1,610 $4,530 October 830 $ 2,490 Novenber 1,420 $ 4,260 December 2,320 $ 6,960 Required: 1. Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy-day Note: 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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