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Required: 1 Using the high-low method estimate the freed 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 pieces and Fixed cost element answer to nearest whole dollar amount) Variable cost of secticity

Required: 1 Using the high-low method estimate the freed 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 pieces and Fixed cost element answer to nearest whole dollar amount) Variable cost of secticity

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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H ances 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 for one day. The hotel's business is highly seasonal, with peaks occurring during the ski season and in the summer. Occupancy Month Days January February March April E Hay June July August September October November December 2,630 3,150 3,640 1,090 4,770 1,750 4,440 3,860 2.170 4,210 1.790 Electrical Costs $10,783 $12,893 $13,585 Variable cost of electricity Fixed cost of hectricity 54,469 37,257 $7.095 14,054 $ 13,815 $8,897 $ 4,961 5:22330 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 dollor amount) per occupancy-day Per month
Transcribed Image Text:H ances 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 for one day. The hotel's business is highly seasonal, with peaks occurring during the ski season and in the summer. Occupancy Month Days January February March April E Hay June July August September October November December 2,630 3,150 3,640 1,090 4,770 1,750 4,440 3,860 2.170 4,210 1.790 Electrical Costs $10,783 $12,893 $13,585 Variable cost of electricity Fixed cost of hectricity 54,469 37,257 $7.095 14,054 $ 13,815 $8,897 $ 4,961 5:22330 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 dollor amount) per occupancy-day Per month
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