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The Lakeshore Hotel's occupancy-days and custodial supplies expense over the last seven months were as follows: Month March April May June July August September Occupancy-

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The Lakeshore Hotel's occupancy-days and custodial supplies expense over the last seven months were as follows: Month March April May June July August September Occupancy- Days 18,900 13,220 16,080 31, 200 29,400 20,400 16,300 Custodial Supplies Expense $ 14,580 14,700 15, 780 20,400 25,740 18,990 17,230 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.) Y = 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 15,600 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

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