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 $1,736$ $ $4,127$

February $1,904$ $ $4,207$

March $2,356$ $ $5,083$

April $960$ $ $2,857$

May $360$ $ $1,871$

June $744$ $ $2,696$

July $2,108$ $ $4,670$

August $2,406$ $ $5,148$

September $840$ $ $2,691$

October $124$ $ $1,588$

November $720$ $ $2,454$

December $1,364$ $ $3,529$

Required:

a$.$ 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.

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