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The Edelweiss Hotel In Vail, Colorado, Has Accumulated Records Of The Total Electrical Costs Of The Hotel And The
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 hotels business is highly seasonal, with peaks occurring during the ski season and in the summer.
Month Occupancy Days Electrical Cost
Jan 2604 $6257
Feb 2856 $6550
March 3534 $7986
April 1440 $4022
May 540 $2289
June 1116 $3591
July 3162 $7264
August 3608 $8111
September 1260 $3707
October 186 $1712
November 1080 $3321
December 2046 $5196
Required:
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.
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