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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 January 3,400 Electrical Costs $10,234 February 3,280 March 4,370 April 1,950 $10,052 $11,605 $ 6,825 May June 680 $ 2,380 1,960 July 4,040 August 4,080 $ 6,860 $11,060 $11,100 September 2,240 $ 7,602 October 1,030 $ 3,605 November 1,460 $ 4,634 December 2,700 $ 8,974 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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