Exercise 5A-1 High-Low Method L05-10 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 Month January February March Occupancy Days Electrical Costs 1,736 $4.127 1.904 $4,207 2.356 $5.083 April 960 $2.857 May 360 $1,871 June 744 $2.696 July 2.108 $4,670 August 2,406 $5,148 Activate Windows Go tohoto to Windows September 840 $ 2.691 2.406 $5,148 August September 840 $ 2,691 October 124 $ 1.588 November 720 $2.454 December 1.364 $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 day. Round off the fixed cost to the nearest whole dollar and the variable cost to the nearest whole cent 2. What other factors in addition to occupancy days are likely to affect the variation in electrical costs from month to month Page 243