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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 skl season and in the summer. Company El Co January 3.030 09.044 5.080 9,234 March 3,980 311.913 Apel 1.630 $.6.194 May 1,270 3.4.826 2,110 8,010 July 650 $ 2,470 August 3,690 $11,552 September 1.960 $ 7,448 October $12,998 November 1,600 5.6,080 December 8,474 June 2.230 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 clectricity per occupancy day per month
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