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The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs...

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Accounting

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 2,640 $ 13,200
February 2,860 $ 14,300
March 980 $ 4,900
April 2,420 $ 12,100
May 2,090 $ 10,450
June 4,470 $ 18,860
July 4,020 $ 17,160
August 3,940 $ 16,760
September 1,630 $ 8,150
October 1,090 $ 5,450
November 1,390 $ 6,950
December 2,910 $ 14,550

Required:
1. 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 your intermediate calculations. Round your Variable cost answer to 2 decimal places and Fixed cost element answer to nearest whole dollar amount)

occupancy electrical
days costs
high activity level
low activity level
change 0 $0
variable cost per occupancy day
fixed cost element

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