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The Cheyenne Hotel in Big Sky, Montana, recorded its total electrical costs and number of...

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Accounting

The Cheyenne Hotel in Big Sky, Montana, recorded its total electrical costs and 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 Occupancy-Days Electrical Costs
January 1,736 $ 4,127
February 1,904 $ 4,207
March 2,356 $ 5,083
April 960 $ 2,857
May 360 $ 1,871
June 744 $ 2,696
July 2,108 $ 4,670
August 2,406 $ 5,148
September 840 $ 2,691
October 124 $ 1,588
November 720 $ 2,454
December 1,364 $ 3,529
Required:
Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy-day.
Note: 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.

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