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The hotel manager desires to know the breakdown of the electric costs between variable and fixed categories. The following information was provided: Month Electric Expenses
The hotel manager desires to know the breakdown of the electric costs between variable and fixed categories. The following information was provided:
Month | Electric Expenses | Occupancy Percentage |
January | $6,200 | 62% |
April | 6,600 | 68% |
August | 7,200 | 78% |
December | 5,500 | 50% |
Using the high/low method, determine the following:
Variable costs per 1 percent of occupancy.
Estimated fixed costs per month.
Estimated total electric expense at 62% occupancy.
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