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Question - The following information is available for your Lucro Island Hotel.
September
October
November
December
Sales (average No. of rooms per day)
25
26
28
27
Total cost per month
$120,000
$119,240
$123,600
$123,480
Required -
a) Using the high-low method, estimate the cost formula for Lucro Island Hotel.
b) Using the cost formula determined in part (a) above, estimate total expenses for January based a projected sales of an average 27 rooms per day for the month of January. Show your workings.
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