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The following data has been gathered to assess costs of operation for a hotel 1. Wages for staff is $18,400 a month 2. Base charge

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The following data has been gathered to assess costs of operation for a hotel 1. Wages for staff is $18,400 a month 2. Base charge for utilities is $3,340. Additional $1.80 a night is incurred for each room 3. Fixed costs for taxes, insurance, etc. amount to $3,400 4. Breakfast for guests cost on average $3.20 per room 5. Data for cleaning service below: Cost ($) Rooms occupied 8,370 940 7,990 880 10,290 1,120 9,120 1,000 6,870 740 9,345 1,070 7,470 800 10,150 1,150 9,390 950 a. Using hi-lo method, create an equation for the behavior of housekeeping costs. Use the form Y = a +bX b. Develop an equation for total costs of operation. Use the form Y= a +bX C. Using the equation, forecast total operating costs given1,250 rooms are occupied d. What is the marginal cost of an occupied room

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