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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 3,180 $ 6,510 February 2,920 $ 6,261 March 3,780 $ 7,392 April 2,160 $ 5,569 May 650 $ 1,820 June 2,050 $ 5,261 July 4,050 $ 7,829 August 4,070 $ 7,896 September 1,780 $ 4,984 October 570 $ 1,596 November 1,580 $ 4,424 December 2,680 $ 5,908 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
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