The Royal Canadian Lodge in Banff, Alberta, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented out for one day. The hotels business is highly seasonal, with peaks occurring during the ski season and in the summer.

Month	Occupancy-Days		Electrical Costs
January	1,736		$	4,127
February	1,407			3,207
March	2,555			5,210
April	960			2,857
May	630			2,871
June	744			2,696
July	2,108			4,670
August	1,406			3,148
September	480			1,391
October	230			1,490
November	720			2,454
December	1,364			3,529

Required:

1. Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy-day. (Round the "Fixed cost" to the nearest dollar amount and "Variable cost" to 2 decimal places.)

2. What factors other than occupancy-days are likely to affect the monthly variation in electrical costs? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

check all that apply

• Less systematic factors such as frugality of individual guests may also affect electrical costs.
• Fixed salary paid to hotel receptionist.
• Electrical costs may reflect seasonal factors other than just the variation in occupancy days.
• Income taxes paid on hotel income.