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

Month	Occupancy-Days	Custodial Supplies Expense
March	18,450	$	20,590
April	12,860		21,550
May	15,540		25,480
June	29,850		31,750
July	26,700		37,330
August	18,600		28,690
September	15,400		26,510

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 = --------- + --------- x

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 14,800 occupancy-days? (In your computations, round "Variable cost per unit" to 2 decimal places and final answers to the nearest dollar amount.)

Variable Cost =

Fixed Cost =

Total Cost =