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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 out 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 3,240 $ 8,622 February 3,060 $ 8,228 March 1.150 $ 3,910 April 2,260 $ 7,684 May 4,310 $10,984 June 1,270 $ 4,318 July 3,410 $ 9,418 August 640 $ 2,176 September $ 4,454 October 3,780 $ 9,738 November 1,330 $ 4,522 December 2,570 $ 7,868 1,310 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) Occupancy Days Electrical Gosts High activity level Low activity level Change per occupancy-day Variable cost Fixed cost element 2. What other factors other than occupancy-days are likely to affect the variation in electrical costs from month to month? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answers and double click the box with the question mark to empty the box for a wrong answers.) Income taxes paid on hotel income Seasonal factors like winter or summer Systematic factors like guests, switching off fans and lights Number of days present in a month
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