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.

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 other than occupancy-days are likely to affect the variation in electrical costs from month tomonth?

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Occupancy Electrical Month Days January February.t March. e-.. April May. June July.. 2,604 2,856 3,534 1,440 540 1,116 3,162 3,608 1,260 186 1,080 2,046 6,257 $6,550 $7,986 4,022 $2,289 $3,591 $7,264 $8,111 $3,707 $1,712 $3,321 $5,196 October .-.-.. Novembr December