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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
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. 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 Intermedlete calculetlons. Round your Vorleble cost answer to 2 declmal places and Flxed cost element answer to neorest whole dollor amount. 2. 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 cllek the box with the questlon mark to produce a check mark for a correct answer and double cllek the box with the questlon mark to empty the box for a wrong answer. Any boxes left with a questlon mork will be automatically graded as Incorrect. Systematic factors like guests, switching off fans and lights. Number of days present in a month. Income taxes pald on hotel income. Seasonal factors like winter or summer. Fixed salary pald to hotel receptionlst
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