7. value 10.00 points Exercise 6-1 Applying the High-Low Method; Predicting Cost (LO2 - CC9) The Lakeshore Hotel's occupancy-days and custodial supplies expense over the last seven months were as follows Custodial Supplies Month March April May June July August September Occupancy-Days 8,400 9,600 13,100 20,500 27,000 18,800 15,500 Expense $ 14,220 15,500 18,280 23,900 29,100 21,190 19,250 Occupancy-days are a measure of the overall activity at the hotel. For example, when a guest stays at the hotel for three days, it is counted as three occupancy-days Required: 1. Using the high-low method, estimate a cost formula for custodial supplies expense. (Round the "Variable cost" to 2 decimal places.) 2. Using the cost formula you derived above, what amount of custodial supplies expense would you expect to be incurred at an occupancy level of 14,000 occupancy-days? Variable cost Fixed cost Total cost