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The Katz Motel in Nowhere, Kansas, has accumulated records of the total electrical costs of the motel and the number of occupancy-days over the last

The Katz Motel in Nowhere, Kansas, has accumulated records of the total electrical costs of the motel and the number of occupancy-days over the last year. An occupancy-day represents a room rented for one day. The motels business is highly seasonal, with peaks occurring during the ski season and in the summer.

Month

Occupancy-Days

Electrical Costs
January 3,180 $ 6,510
February 2,920 $ 6,261
March 3,780 $ 7,392
April 2,160 $ 5,569
May 650 $ 1,820
June 2,050 $ 5,261
July 4,050 $ 7,829
August 4,070 $ 7,896
September 1,780 $ 4,984
October 570 $ 1,596
November 1,580 $ 4,424
December 2,680 $ 5,908

1. Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy-day. (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.)

variable costs of electricity __________ per occupancy-day

fixed cost of electricity _____________ per month

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