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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 hotels business is highly seasonal, with peaks occurring during the ski season and in the summer.

Month

Occupancy-Days

Electrical Costs
January 2,710 $ 5,270
February 3,600 $ 6,205
March 860 $ 2,150
April 2,170 $ 4,350
May 4,200 $ 7,160
June 1,530 $ 3,825
July 4,110 $ 7,050
August 4,060 $ 6,925
September 1,980 $ 4,090
October 1,160 $ 2,900
November 1,210 $ 3,025
December 2,480 $ 4,910

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.)

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