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Business, 10.03.2020 00:26 MOONCHILDSUGA

The Cheyenne Hotel in Big Sky, Montana, 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 hotel's business is highly seasonal, with peaks occurring during the ski season and in the summer.

Month Occupancy Days Electrical Costs
January 3,400 $ 10,234
February 3,280 $ 10,052
March 4,370 $ 11,605
April 1,950 $ 6,825
May 680 $ 2,380
June 1,960 $ 6,860
July 4,040 $ 11,060
August 4,080 $ 11,100
September 2,240 $ 7,602
October 1,030 $ 3,605
November 1,460 $ 4,634
December 2,700 $ 8,974

Required:
Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy-day. (Do not round intermediate calculations. Round Variable cost to 2 decimal places and Fixed cost element to the nearest dollar.)

Occupancy days Electrical cost
High activity level
Low activity level
Change
Variable cost
Fixed cost

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