The Lakeshore Hotels occupancy-days and custodial supplies expense over the last seven months were as follows:

Month	Occupancy-Days	Custodial Supplies Expense
March	18,200	$	11,960
April	12,660		12,330
May	15,240		16,520
June	29,100		20,300
July	25,200		23,120
August	17,600		17,210
September	14,900		16,290

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 "Fixed cost" to the nearest dollar amount and "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 13,800 occupancy-days? (In your computations, round "Variable cost per unit" to 2 decimal places and final answers to the nearest dollar amount.)

Amount

Variable cost

fixed cost

Total cost