BRIEF EXERCISE 6-2 Applying the High-Low Method [LO2-CC9) The Royal Canadian Loden in Banff, Alberta, has accumulated records of the total electrical costs of the hotel and the number of occupades on the last year. An occupancy day represents a room rented out for one day. The hotel's business is highly seasonal, with peale occurring during the diseason and in the summer. Month Electric Con Occupancy Days 1.735 $4,127 February 1407 3.207 March 2.555 5210 Apr 960 2857 My 630 2871 June 744 2.696 July 2.108 4670 1406 August September October 480 1.391 230 1.490 November 720 2454 December 1364 3.529 Required: 1. Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy du Round the fixed cost to the starest whole dollar and the variable cost to the nearest sholt cent. 2 What factors other than occupancy days are likely to affect the monthly variation is electrical costs? BRIEF EXERCISE 6-5 Understanding Cost Behaviour and Contribution Margin (L01 - CC1, 3; L03 - CC12] Murugan Ltd. had the following results for the year Sales $45.000 Less Operating expenses Net operating income $6.000 The average selling price for the units sold was $15 per unit and werage variable cost $ per unit Required Prepare a contribution margin income statement