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The Lakeshore Hotel's occupancy-days and custodial supplies expense over the last seven months were as follows: Month OccupancyDays Custodial Supplies Expense March 18,000 $22,500 April

The Lakeshore Hotel's occupancy-days and custodial supplies expense over the last seven months were as follows: Month OccupancyDays Custodial Supplies Expense

March 18,000 $22,500
April 12,500 20,850
May 15,000 20,250
June 28,500 28,850
July 24,000 27,100
August 19,000 22,750
September 14,500 20,750

Occupancy-days are a measure of the overall activity at the hotel. For example, when a guest stays at the hotel for three days, it is counted as three occupancy days. Required:

1. Using the high-low method, estimate a cost formula for custodial supplies expense. (Round the "Variable cost" to 2 decimal places.)

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 13,000 occupancy-days? (Do not round intermediate calculations.)

Amount
Variable Cost
Fixed Cost
Total Cost

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