the cheyenne hotel in big sky montana has accumulated 369681

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.



1. Using the high low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy day. Round off the fixed cost to the nearest whole dollar and the variable cost to the nearest whole cent.

2. What other factors other than occupancy days are likely to affect the variation in electrical costs from month tomonth?