Luxury Resorts has been evaluating how it might expand itssustainability efforts in its hotels.

To evaluate these? options, management has gathered data for thepast year for its laundry costs and housekeeping costs. The costsand occupancy data? include:

Requirement 1. Using the? high-low method, calculate the costper guest of laundry per day.? (The volume should be the number ofroom? days, which you will have to calculate for each? month.)

Begin by calculating the number of room days for each month.

	# of room days
January	54020
February	59860
March	52560
April	45260
May	35040
June	39420
July	43800
August	40880
September	27740
October	37960
November	36500
December	48180

?(Round your answer to the nearest? cent.)

The variable cost per guest of laundry per day is $

0.45

.

Requirement 2. Using the? high-low method, calculate the costper guest of housekeeping per day.? (Again, the volume should bethe number of room? days, which you would have calculated forRequirement? 1.) ?(Round your answer to the nearest? cent.)

The variable cost per guest of housekeeping per day is $

1.35

.

Requirement 3. Using the? high-low method, evaluate the proposalto give guests a $0.70 per day credit for reusing their roomlinens. Does it appear to be cost-effective to offer this?program?

This does not/does appear to be a cost effective program as thecredit for reusing room linens is less/more than the variable costof laundering the linens.

Requirement 4. Using the? high-low method, evaluate the proposalto give guests a $ 0.90 per day credit for skipping housekeepingservices. Does it appear to be cost effective to offer this?program?

This does/does not appear to be a cost effective program as thecredit for skipping housekeeping services is more/less than thevariable cost of laundering the linens.

Requirement 5. Using regression? analysis, calculate the costper guest of laundry per day.? (Again, the volume should be thenumber of room? days, which you would have calculated forRequirement? 1.) ?(Round your answer to the nearest? cent.)

The variable cost per guest of laundry per day is $

.

Requirement 6. Using regression? analysis, calculate the costper guest of housekeeping per day.? (Again, the volume should bethe number of room? days, which you would have calculated forRequirement? 1.) ?(Round your answer to the nearest? cent.)

The variable cost per guest of housekeeping per day is $

.

Requirement 7. Using regression? analysis, evaluate the proposalto give guests a $0.70 per day credit for reusing their roomlinens. Does it appear to be cost effective to offer this?program?

This

?

appear to be a cost effective program as the credit for reusingroom linens is

?

than the variable cost of laundering the linens.Requirement 8.Using regression? analysis, evaluate the proposal to give guests a$ 0.90 per day credit for skipping housekeeping services. Does itappear to be cost effective to offer this? program?

This

?

appear to be a cost effective program as the credit for skippinghousekeeping services is

?

than the variable cost of laundering the linens.

Requirement 9. Regarding the two? programs, what is yourrecommendation to management about which? program(s) to? implement?Provide rationale for your recommendation.

?

credit? program(s) should be? implemented;

?

cost effective and environmentally conscious? program(s) thatstakeholders are likely to appreciate.