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28 Sep 2019
The following information applies to the questions displayedbelow.]
The Cheyenne Hotel in Big Sky, Montana, has accumulated records ofthe total electrical costs of the hotel and the number ofoccupancy-days over the last year. An occupancy-day represents aroom rented out for one day. The hotel's business is highlyseasonal, with peaks occurring during the ski season and in thesummer.
Month Occupancy-
Days Electrical
Costs
January 2,602 $6,257
February 2,877 $6,535
March 4,360 $8,082
April 1,445 $4,025
May 430 $2,283
June 1,127 $3,594
July 3,174 $7,272
August 4,410 $8,147
September 1,264 $3,709
October 310 $1,714
November 1,037 $3,317
December 2,033 $5,181
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Requirement 1:
Using the high-low method, estimate the variable cost ofelectricity per occupancy-day and the fixed cost of electricity permonth. (Round the fixed cost to the nearest whole dollar and thevariable cost to 2 decimal places. Omit the "$" sign in yourresponse.)
Variable cost $ per occupancy day
Fixed cost $ per month
--------------------------------------------------------------------------------
Requirement 2:
Which of the following statement(s) is true? (Select all thatapply.)
a. Less systematic factors such as frugality of individual guestsmay also affect electrical costs
b. Electrical cost may reflect seasonal factors other than just thevariation in occupancy days
c. Fixed cost will not be affected by the number of days in amonth
The following information applies to the questions displayedbelow.]
The Cheyenne Hotel in Big Sky, Montana, has accumulated records ofthe total electrical costs of the hotel and the number ofoccupancy-days over the last year. An occupancy-day represents aroom rented out for one day. The hotel's business is highlyseasonal, with peaks occurring during the ski season and in thesummer.
Month Occupancy-
Days Electrical
Costs
January 2,602 $6,257
February 2,877 $6,535
March 4,360 $8,082
April 1,445 $4,025
May 430 $2,283
June 1,127 $3,594
July 3,174 $7,272
August 4,410 $8,147
September 1,264 $3,709
October 310 $1,714
November 1,037 $3,317
December 2,033 $5,181
--------------------------------------------------------------------------------
Requirement 1:
Using the high-low method, estimate the variable cost ofelectricity per occupancy-day and the fixed cost of electricity permonth. (Round the fixed cost to the nearest whole dollar and thevariable cost to 2 decimal places. Omit the "$" sign in yourresponse.)
Variable cost $ per occupancy day
Fixed cost $ per month
--------------------------------------------------------------------------------
Requirement 2:
Which of the following statement(s) is true? (Select all thatapply.)
a. Less systematic factors such as frugality of individual guestsmay also affect electrical costs
b. Electrical cost may reflect seasonal factors other than just thevariation in occupancy days
c. Fixed cost will not be affected by the number of days in amonth
The Cheyenne Hotel in Big Sky, Montana, has accumulated records ofthe total electrical costs of the hotel and the number ofoccupancy-days over the last year. An occupancy-day represents aroom rented out for one day. The hotel's business is highlyseasonal, with peaks occurring during the ski season and in thesummer.
Month Occupancy-
Days Electrical
Costs
January 2,602 $6,257
February 2,877 $6,535
March 4,360 $8,082
April 1,445 $4,025
May 430 $2,283
June 1,127 $3,594
July 3,174 $7,272
August 4,410 $8,147
September 1,264 $3,709
October 310 $1,714
November 1,037 $3,317
December 2,033 $5,181
--------------------------------------------------------------------------------
Requirement 1:
Using the high-low method, estimate the variable cost ofelectricity per occupancy-day and the fixed cost of electricity permonth. (Round the fixed cost to the nearest whole dollar and thevariable cost to 2 decimal places. Omit the "$" sign in yourresponse.)
Variable cost $ per occupancy day
Fixed cost $ per month
--------------------------------------------------------------------------------
Requirement 2:
Which of the following statement(s) is true? (Select all thatapply.)
a. Less systematic factors such as frugality of individual guestsmay also affect electrical costs
b. Electrical cost may reflect seasonal factors other than just thevariation in occupancy days
c. Fixed cost will not be affected by the number of days in amonth
Jamar FerryLv2
28 Sep 2019