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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. Requlred: 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 Intermedlate colculatlons. Round your Varlable cost answer to 2 declmal pleces and Flxed cost element answer to nearest whole dollar amount.) 2 What other factors in addition to occupancy-days are likely to affect the variation in electrical costs from month to month? (You mey select more than one answer. Slngle cllek the box with the questlon mark to produce a check mark for a correct answer and double ellek the box with the questlon mark to empty the box for a wrong answer. Any boxes left with a questlon mark will be automatlcally graded as Incorrect.) Systematic factors like guests, switching off fans and lights. Number of days present in a month. Income taxes pald on hotel Income. Seasonal factors like wnter or summer. Fixed salary pald to hotel receptionist
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