The Cheyenne Hotel in Big Sky$,$ Montana, recorded its total electrical costs and 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.

Month Occupancy$-$Days Electrical Costs

January $3,230$ $ $10,194$

February $3,100$ $ $9,888$

March $4,170$ $ $12,266$

April $2,110$ $ $7,807$

May $1,100$ $ $4,070$

June $950$ $ $3,515$

July $3,190$ $ $10,046$

August $2,080$ $ $7,696$

September $4,200$ $ $12,290$

October $1,060$ $ $3,922$

November $1,670$ $ $6,179$

December $2,830$ $ $9,241$

Required:

Using the high$-$low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy$-$day.

Note: 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.

What other factors in addition to occupancy$-$days are likely to affect the variation in electrical costs from month to month?

Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.

check all that apply

Systematic factors like guests, switching off fans and lights.

Number of days present in a month.unanswered

Income taxes paid on hotel income.unanswered

Seasonal factors like winter or summer.unanswered

Fixed salary paid to hotel receptionist.