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The Cheyenne Hotel In Blg 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 Blg 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 hotel's business is highly seasonal, with peaks occurrlng 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 varlable cost of electricity per occupancy-day. (Do not round your Intermedlate calculations. Round your Varlable cost answer to 2 decimal places and Flxed cost element answer to nearest whole dollar amount.) 2. What other factors In addition to occupancy-days are IIkely to affect the varlation In electrical costs from month to month? (You may select more than one answer. Single cllck the box with the questlon mark to produce a check mark for a correct answer and double cllck the box with the question mark to empty the box for a wrong answer. Any boxes left wlth a questlon mark will be automatically graded as incorrect.) ? Seasonal factors Ilke winter or summer. ? Systematic factors IIke guests, switching off fans and lights. ? Number of days present in a month. Fixed salary pald to hotel receptlonlst. Income taxes pald on hotel Income
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