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The Lakeshore Hotels guest-days of occupancy and custodial supplies expense over the last seven months were: Month Guest-Days of Occupancy Custodial Supplies Expense March 7,500

The Lakeshore Hotels guest-days of occupancy and custodial supplies expense over the last seven months were:

Month Guest-Days of Occupancy Custodial Supplies Expense
March 7,500 $ 11,000
April 7,000 $ 10,800
May 9,500 $ 11,800
June 11,000 $ 12,400
July 13,000 $ 13,200
August 12,000 $ 12,800
September 9,500 $ 11,800

Guest-days is a measure of the overall activity at the hotel. For example, a guest who stays at the hotel for three days is counted as three guest-days.

Required:
1.

Using the high-low method, estimate a cost formula for custodial supplies expense. (Round the Variable cost per guest-day to 2 decimal points.)

2.

Using the cost formula you derived above, what amount of custodial supplies expense would you expect to be incurred at an occupancy level of 12,800 guest-days? (Do not round your intermediate calculations.)

3.

Prepare a scattergraph using the data given above. (Place custodial supplies expense on the vertical axis and guest-days on the horizontal axis. Round your plotting points to the nearest hundredth value.)

Instructions:
1. On the graph below, use the point tool (Mar) to plot custodial supplies expense on the vertical axis and guest-days on the horizontal axis.
2. Repeat the same process for the plotter tools (Apr, May, June, July, Aug, Sep).
3. To enter exact coordinates, click on the point and enter the values of x and y.
4. To remove a point from the graph, click on the point and select delete option.

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