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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 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 1,310 $ 4,454
October 3,760 $ 9,738
November 1,330 $ 4,522
December 2,570 $ 7,868

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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