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The Scott Hotel's guest days of occupancy and custodial supplies expense over the last seven months were: Month Guest-days of Occupancy Custodial Supplies Expenses March

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The Scott Hotel's guest days of occupancy and custodial supplies expense over the last seven months were: Month Guest-days of Occupancy Custodial Supplies Expenses March 4,000 $ 7,500 April 6,500 $ 8,250 May 8,000 $ 10,500 June 10,500 $ 12,000 July 12,000 $ 13,500 August 9,000 $ 10,750 September 7,500 $ 9,750 Note: guest-days is a measure of the overall activity at the hotel. For example, a guest who stays at the hotel for three days is counted as three guest-days. Required: 1. Using the high low method: a. Determine variable expense per unit or the element of custodial supplies expense per guest-day? b. Determine fixed expense per month or the element of custodial supplies expense per month? C. Prepare a cost formula for custodial supplies expense d. Based on the answer of letter c above, complete income statement under contribution format below: (assumed selling price $ 20 per guest-days, amount of 10,000 guest-days on October, 31 2020, total variable expense $ 10, include custodial supplies expense, and fixed expenses $ 60,000 during October 2020, exclude custodial supplies expense. Scott Hotel's Income Statement-Contribution Format For the Month Ended, October 31, 2020 $ 200,000 Sales Revenue = 10,000 guest-days x $ 20 Variable Expenses = 10,000 guest-days x $ = $ Contribution Margin= = $ Fixed Expense = $ Net Operating Income = = $

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