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The edelweiss hotel in vail colorado has accumulated records

30/12/2020 Client: saad24vbs Deadline: 10 Days

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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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