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.)

	Guest-Days	Custodial Supplies Expense
High activity level
Low activity level
Change	0	$0
Variable cost per guest-day		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 12,800 guest-days? (Do not round your intermediate calculations.)

Variable cost
Fixed cost
Total cost	$0