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:

1. 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.

1. 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.

1. check all that apply

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