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The following information is available for your Lucro Island Hotel.
March
April
May
June
Sales (average No. of rooms per day)
24
25
28
27
Total cost per month
$132,700
$133,000
$138,900
$136,000
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 July based projected sales of an average 27 rooms per day for the month of July. Show your workings.
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