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

3,400

$

10,234

February

3,280

$

10,052

March

4,370

$

11,605

April

1,950

$

6,825

May

680

$

2,380

June

1,960

$

6,860

July

4,040

$

11,060

August

4,080

$

11,100

September

2,240

$

7,602

October

1,030

$

3,605

November

1,460

$

4,634

December

2,700

$

8,974

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)

Occupancy days Electrical cost

High activity level

Low activity level

Change

Variable cost

Fixed cost element

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. Single click the box with the question mark to produce a check mark for a correct answers and double click the box with the question mark to empty the box for a wrong answers.)

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