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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
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 - Electrical Month Days Costs January 3,006 $ 15,080 February 850 $ 4,250 March 4,430 $ 18, 570 April 1, 470 $ 7,350 May 3, 650 $ 18, 250 June 1, 120 $ 5,600 July 3,910 $ 17, 425 August 3, 840 $ 17, 288 September 1,906 $ 9,500 october 1, 090 $ 5,450 November 2, 040 $ 10, 208 December 2, 990 $ 14,950 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 per occupancy-day Fixed cost of electricity per month
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