Question
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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