Question
The Lakeshore Hotel's occupancy-days and custodial supplies expense over the last seven months were as follows: MonthOccupancyDaysCustodial Supplies Expense March18,300$16,700 April12,740$17,250 May15,360$19,000 June29,400$23,350 July25,800$26,000 August18,000$20,750
The Lakeshore Hotel's occupancy-days and custodial supplies expense over the last seven months were as follows:
MonthOccupancyDaysCustodial Supplies Expense
March18,300$16,700
April12,740$17,250
May15,360$19,000
June29,400$23,350
July25,800$26,000
August18,000$20,750
September15,100$20,000
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. Using the High-Low Method, what is the variable cost portion of the cost equation going to be?
A) $0.366
B) $0.558
C) $1.240
D) $0.813
E) $0.599
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started