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 January February March April May June July August September October November December Occupancy-Days 3,030 3,080 3,980 1,630 1,270 2,110 650 3,690 1,960 4,410 1,600 2,230 Electrical Costs $ 9,044 $ 9,234 $11,913 $ 6,194 $ 4,826 $ 8,018 $ 2,470 $11,552 $ 7,448 $12,998 $ 6,080 $ 8,474 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 Prey 1 of 5 Next > Bargain Rental Car offers rental cars in an off-airport location near a major tourist destination in California. Management would like to better understand the variable and fixed portions of its car washing costs. The company operates its own car wash facility in which each rental car that is returned is thoroughly cleaned before being released for rental to another customer. Management believes that the variable portion of its car washing costs relates to the number of rental returns. Accordingly, the following data have been compiled: Month January February March April May June July August September October November December Rental Returns Car Wash Costs 2,300 $ 10,300 2,500 $ 12,800 2,700 $ 11,100 2,900 $ 13,200 3,600 $ 15,500 4,900 $ 21,900 5,500 $ 21,500 5,300 $ 20,400 4,600 $ 22,100 3,800 $ 19,000 2,100 $ 10,000 2,600 $ 11,800 Exercise 5A-2 Part 2 (Algo) 2. Using least-squares regression, estimate the variable cost per rental return and the monthly fixed cost incurred to wash cars. (Round Fixed cost to the nearest whole dollar amount and the Variable cost per unit in darimal noroel Exercise 5A-3 (Algo) Cost Behavior, High-Low Method [LO5-10] Hol Chong Transport, Ltd., operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 96,000 kilometers during a year, the average operating cost is 10.3 cents per kilometer. If a truck is driven only 64,000 kilometers during a year, the average operating cost increases to 11.5 cents per kilometer Required: 1. Using the high-low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated with the fleet of trucks. 2. Express the variable and fixed costs in the form Y = a + bx 3. If a truck were driven 80,000 kilometers during a year, what total operating cost would you expect to be incurred? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using the high-low method, estimate the variable operating cost per kilometer and the annual fixed operating cost as with the fleet of trucks. (Do not round your intermediate calculations. Round the Variable cost per kilometer to 3 dec places.) Professor John Morton has just been appointed chairperson of the Finance Department at Westland University. In reviewing the department's cost records, Professor Morton has found the following total cost associated with Finance 101 over the last five terms: Number of Sections Offered 6 Total Cost $ 12,500 $ 7,500 3 Term Fall, last year Winter, last year Summer, last year Fall, this year Winter, this year 5 2 $ 10,500 $ 6,000 $13,000 7 Professor Morton knows that there are some variable costs, such as amounts paid to graduate assistants, associated with the course. He would like to have the variable and fixed costs separated for planning purposes. Problem 5A-10 Part 2 (Algo) 2-a. Using the least-squares regression method, estimate the variable cost per section and the total fixed cost per term for Finance 101 2-b. Express these estimates in the form Y = a + bx. Professor John Morton has just been appointed chairperson of the Finance Department at Westland University. In reviewing the department's cost records, Professor Morton has found the following total cost associated with Finance 101 over the last five terms: Number of Sections Offered 6 Total Cost $ 12,500 $ 7,500 3 Term Fall, last year Winter, last year Summer, last year Fall, this year Winter, this year 5 2 $ 10,500 $ 6,000 $13,000 7 Professor Morton knows that there are some variable costs, such as amounts paid to graduate assistants, associated with the course. He would like to have the variable and fixed costs separated for planning purposes. Problem 5A-10 Part 3 (Algo) 3-a. Assume that because of the small number of sections offered during the Winter Term this year, Professor Morton will have to offer eight sections of Finance 101 during the Fall Term. Compute the expected total cost for Finance 101 3-5. Can you see any problem with using the cost formula from (2) above to derive this total cost figure