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.

Month	Occupancy- Days	Electrical Costs
January	2,620	$	5,100
February	580	$	1,450
March	4,080	$	6,575
April	2,000	$	5,000
May	2,880	$	5,750
June	1,750	$	4,375
July	3,430	$	5,965
August	940	$	2,350
September	1,570	$	3,925
October	4,320	$	7,060
November	1,210	$	3,025
December	2,740	$	5,400

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)

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. Boxes left with question marks will be graded as incorrect.)

	Income taxes paid on hotel income.
	Number of days present in a month.
	Seasonal factors like winter or summer.
	Systematic factors like guests, switching off fans and lights.