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The Cheyenne Hotel in Big Sky, Montana, 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 for one day. The hotel's business is highly seasonal, with peaks occurring during the ski season and in the summer. Month January February March April May June July August September October November December Occupancy-Days Electrical Costs 2,710 $ 5,270 3,600 $ 6,205 860 $ 2,150 2,170 $ 4,350 4,200 $ 7,160 1,530 $ 3,825 4,110 $ 7,050 4,060 $ 6,925 1,980 $ 4,090 1,160 $ 2,900 1,210 $ 3,025 2,480 $ 4,910 Required: 1. Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy-day. (Do not round your intermediate calculations. Round your Variable cost answer to 2 decimal places and Fixed cost element answer to nearest whole dollar amount.) per occupancy-day Variable cost of electricity Fixed cost of electricity per month Hoi Chong Transport, Ltd., operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 141,000 kilometers during a year, the average operating cost is 12.1 cents per kilometer. If a truck is driven only 94,000 kilometers during a year, the average operating cost increases to 14.6 cents per kilometer. Required: 1. Using the high-low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated with the fleet of trucks. 2. Express the variable and fixed costs in the form Y = a + bx. 3. If a truck were driven 117,000 kilometers during a year, what total operating cost would you expect to be incurred? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using the high-low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated with the fleet of trucks. (Do not round your intermediate calculations. Round the Variable cost per kilometer to 3 decimal places.) Variable cost per kilometer per year Fixed cost If a truck were driven 117,000 kilometers during a year, what total operating cost would you expect to be incurred? (Do not round intermediate calculations.) Total annual cost Required 1 Required 2 Required 3 Express the variable and fixed costs in the form Y = a + bx. (Do not round your intermediate calculations. Round the Variable cost per kilometer to 3 decimal places.) Y=

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