Solution-What other factors other than occupancy-days are

What other factors other than occupancy-days are likely to

Reference no: EM13977095

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
January . . . . . . . . .	2604	6257
February . . . . . . . .	2856	6550
March . . . . . . . . . . .	3534	7986
April . . . . . . . . . . .	1440	4022
May . . . . . . . . . . . .	540	2289
June . . . . . . . . . . .	1116	3591
July . . . . . . . . . . . . .	3162	7264
August . . . . . . . . .	3608	8111
September . . . . . .	1260	3707
October . . . . . . . . .	186	1712
November . . . . . . .	1080	3321
December . . . . . . .	2046	5196

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 to month?

Reference no: EM13977095

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What other factors other than occupancy-days are likely to

Reference no: EM13977095

Reference no: EM13977095

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