Parte VI: HIGH LOW METHOD PROBLEM ( projected costs ) ( 20 pts)

The Best Cinema has accumulated records of the total utilities costs of the movies and number of clients movies over the last year. An client-day represents a movie viewed out for one day. The Cinemas business is highly seasonal, with peaks occurring during the summer season and fall .

Month - 2016	Client - movies	Utilities costs
Jan	2,604	$ 6,257
Feb	2,856	6,550
March	3,534	7,986
April	1,440	4,022
May	540	2,289
June	1,116	3,591
July	3,162	7,264
Aug	3,608	8,111
Sep	1,260	3,707
Oct	486	1,912
Nov	1,080	3,321
Dec	2,046	5,196

REQUIRED

Using the HIGH-LOW METHOD, estimate the FIXED COSTS of electricity per month and the VARIABLE COST of electricity per occupancy-day.

Using the cost formula and projected the utilities costs for the followings seven months: year 2017

Month - 2017	Client days	Utilities costs
Jan 2017	3,500	$
Feb	4,050
March	4,800
April	2,580
April	2,500
May	890
June	1825
July	4,800