The edelweiss hotel in vail colorado has accumulated

Reference no: EM13577774

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.

Month	Occupancy Days	Electrical costs
Jan	2604	$6,257.00
Feb	2856	$6,550.00
Mar	3534	$7,986.00
Apr	1440	$4,022.00
May	540	$2,289.00
Jun	1116	$3,591.00
Jul	3162	$7,264.00
Aug	3608	$8,111.00
Sep	1260	$3,707.00
Oct	186	$1,712.00
Nov	1080	$3,321.00
Dec	2046	$5,196.00

Required:

1) Using the high / lo method, estimate the fixed cost of electricity per month and the variable cost of electricty 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 to month?

Reference no: EM13577774

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