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The Lakeshore Hotels occupancy-days and custodial supplies expense over the last seven months were as follows: Month Occupancy-Days Custodial Supplies Expense March 18,050 $ 9,800

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

Month Occupancy-Days Custodial Supplies Expense
March 18,050 $ 9,800
April 12,540 9,850
May 15,060 13,700
June 28,650 16,000
July 24,300 17,520
August 17,000 13,250
September 14,600 12,990

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.

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 13,200 occupancy-days?

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