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The Lakeshore Hotel's guest-days of occupancy and custodial supplies expense over the last seven months were: Month March April May June July August September Guest-Days

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The Lakeshore Hotel's guest-days of occupancy and custodial supplies expense over the last seven months were: Month March April May June July August September Guest-Days of Occupancy 9,000 8,500 11,000 12,500 14.000 13,000 10.500 Custodial Supplies Expense $ 14,600 $ 14,100 $ 16,600 $ 18,100 $ 19,600 $ 18,600 $ 16,100 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.) Guest-Days Custodial Supplies Expense High activity level Low activity level Change 0 $ 0 per guest-day Variable cost per guest-day Fixed cost per month 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 12,500 guest-days? (Do not round your intermediate calculations.) Variable cost Fixed cost Total cost $ 0 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 Mar 20000 April 18000- 16000- May 14000- 12000- June Custodial Supplies Expense 10000- 8000- 6000 - July 4000- 2000- August 0 0 2000.4000 6000 6000 10000 12000 14000 16000 18000 Sept Guest Days reset References eBook & Rescue

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