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The Kozak Hotel uses the high-low method to analyze cost behavior, and have determined that number of occupancy days best predict the hotel's utilities
The Kozak Hotel uses the high-low method to analyze cost behavior, and have determined that number of occupancy days best predict the hotel's utilities cost. Total utilities cost and occupancy days for the last year, 2021, are below: Month Total Utilities Cost Days of Occupancy January $6,510 3,180 February $6,261 2,920 March $7,392 3,780 April $5,569 2,160 May $1,820 650 June $5,261 2,050 July $7,929 4,050 August $7,896 4,070 September $4,984 1,780 October $1,596 570 November $4,424 $5,908 December 1,580 2,680 Using the high-low method, estimate the utility costs in January of 2022 the hotel is estimating to have 3,600 days of occupancy?
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