exercise 1 4 high low method lo4 the edelweiss hotel in vail colorado has accum 381431

Exercise 1 4 High Low Method [LO4] The Edelweiss Hotel in Vail, Colorado, 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 2,630 $ 10,783 February 3,130 $ 12,833 March 3,640 $ 13,583 April 1,090 $ 4,469 May 1,770 $ 7,257 June 1,730 $ 7,093 July 4,440 $ 14,854 August 3,860 $ 13,815 September 2,170 $ 8,897 October 1,210 $ 4,961 November 1,790 $ 7,339 December 2,930 $ 12,013 Required: 1. Using the high low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy day. (Round the “Variable cost per occupancy day” to 2 decimal places and the “Fixed cost” to the nearest dollar amount.)