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 |
2,620 |
$5,100 |
| February |
580 |
$1,450 |
| March |
4,080 |
$6,575 |
| April |
2,000 |
$5,000 |
| May |
2,880 |
$5,750 |
| June |
1,750 |
$4,375 |
| July |
3,430 |
$5,965 |
| August |
940 |
$2,350 |
| September |
1,570 |
$3,925 |
| October |
4,320 |
$7,060 |
| November |
1,210 |
$3,025 |
| December |
2,740 |
$5,400 |
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)