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Luxury Resorts has been evaluating how it might expand its sustainability efforts in its hotels.

To evaluate these options, management has gathered data for the past year for its laundry costs and housekeeping costs. The costs and occupancy data include:

Requirement 1. Using the high-low method, calculate the cost per guest of laundry per day. (The volume should be the number of room days, which you will have to calculate for each month.)

Begin by calculating the number of room days for each month.

	# of room days
January	54020
February	59860
March	52560
April	45260
May	35040
June	39420
July	43800
August	40880
September	27740
October	37960
November	36500
December	48180

(Round your answer to the nearest cent.)

The variable cost per guest of laundry per day is $

0.45

.

Requirement 2. Using the high-low method, calculate the cost per guest of housekeeping per day. (Again, the volume should be the number of room days, which you would have calculated for Requirement 1.) (Round your answer to the nearest cent.)

The variable cost per guest of housekeeping per day is $

1.35

.

Requirement 3. Using the high-low method, evaluate the proposal to give guests a $0.70 per day credit for reusing their room linens. Does it appear to be cost-effective to offer this program?

This does not/does appear to be a cost effective program as the credit for reusing room linens is less/more than the variable cost of laundering the linens.

Requirement 4. Using the high-low method, evaluate the proposal to give guests a $ 0.90 per day credit for skipping housekeeping services. Does it appear to be cost effective to offer this program?

This does/does not appear to be a cost effective program as the credit for skipping housekeeping services is more/less than the variable cost of laundering the linens.

Requirement 5. Using regression analysis, calculate the cost per guest of laundry per day. (Again, the volume should be the number of room days, which you would have calculated for Requirement 1.) (Round your answer to the nearest cent.)

The variable cost per guest of laundry per day is $

.

Requirement 6. Using regression analysis, calculate the cost per guest of housekeeping per day. (Again, the volume should be the number of room days, which you would have calculated for Requirement 1.) (Round your answer to the nearest cent.)

The variable cost per guest of housekeeping per day is $

.

Requirement 7. Using regression analysis, evaluate the proposal to give guests a $0.70 per day credit for reusing their room linens. Does it appear to be cost effective to offer this program?

This

appear to be a cost effective program as the credit for reusing room linens is

than the variable cost of laundering the linens.Requirement 8. Using regression analysis, evaluate the proposal to give guests a $ 0.90 per day credit for skipping housekeeping services. Does it appear to be cost effective to offer this program?

This

appear to be a cost effective program as the credit for skipping housekeeping services is

than the variable cost of laundering the linens.

Requirement 9. Regarding the two programs, what is your recommendation to management about which program(s) to implement? Provide rationale for your recommendation.

credit program(s) should be implemented;

cost effective and environmentally conscious program(s) that stakeholders are likely to appreciate.

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