EXERCISE I-4 High-Low Method [LO4] The Edelweiss Hotel in Vail, Colorado, 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 out for one day. The hotel's business is highly seasonal, with peaks occurring during the ski season and in the summer. Occupancy Electrical TAKE TWO Month Days Costs January .......... 2,604 $6,257 October occu February .... 4 4! 2,856 $6,550 - 580 March 3.534 $7,986 October elec April. 1,440 $4,022 = $2.31 May .. 540 $2,289 June... 1,116 $3.591 July mmmmmm 3,162 $7,264 August ......... 3,608 $8,111 September ....... 1,260 $3,707 October ......small 186 $1,712 November ...........: 1,080 $3,321 December........ 2,046 $5,196 Required: I. 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 other than occupancy-days are likely to affect the variation in electrical costs from month to month