Wages for desk clerks amount to $18,400/month.
Base charge for utilities is $3,340/month. An additional $1.80/night is incurred on average for each occupied room.
Fixed costs for taxes, insurance, advertising, etc. amount to $3,400/month.
The complimentary breakfast provided to guests costs on average $3.20 per occupied room.
Data regarding housekeeping costs for the last nine months are given below.
	Cost ($)	Rooms occupied
	8,370	940
	7,990	880
	10,290	1,120
	9,120	1,000
	6,870	740
	9,345	1,070
	7,470	800
	10,150	1,150
	9,390	950
a) Using the hi-lo method, develop an equation for the behavior of housekeeping costs, in the form Y = a + bX
b) Develop an equation for total costs of operation, in the form Y = a + bX
c) Using your equation, forecast total operating cost if 1,250 rooms are occupied
d) Why might your answer to part c be unreliable?
e) What is the marginal cost of an occupied room? How might this information be of use to the owner?