Exerclse $5$A$-1($Algo$)$ High$-$Low Method $[$LO$5-10]$

The Cheyenne Hotel in Big Sky$,$ Montana, recorded its total electrical costs and 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.

Requlred:

Using the high$-$low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy$-$day.

Note: Do not round your Intermedlate calculations. Round your Varlable cost answer to $2$ declmal places and Flxed cost

element onswer to nearest whole dollor omount.

What other factors in addition to occupancy$-$days are likely to affect the variation in electrical costs from month to month?

Note: You may select more than one answer. SIngle ellek the box with the questlon mark to produce a check mark for a correct

answer and double ellek the box with the questlon mark to empty the box for a wrong answer. Any boxes left with a questlon

mork will be autometically graded os Incorrect.

Systematic factors like guests, switching off fans and lights.

Number of days present in a month.

Income taxes pald on hotel income.

Seasonal factors like winter or summer.

Fixed salary pald to hotel receptionist.