Solution:
1.
Variable cost of electricity = (Highest activity level cost - lowest activity level cost ) / ( highest activity- lowest activity)
= ($11,605-2,380)/ (4,370- 680)
= $2.50 per occupancy day
Fixed cost of electricity = $11,605 - $2.5×4,370
= $680 per month
part 2.
Occupancy-Days 3,400 280 Nm 0 0 Month January February March April May June July August September...
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. 680 Month January Tebruary March April May June July August September October November December Occupancy-Days Electrical Costs 3,400 $10,234 3,280 $10,052 4.370 $11,605 1,950 $ 6,825 $...
2. What other factors in addition to occupancy-days are likely to affect the variation in electrical costs from month to month? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Systematic factors like guests, switching...
Use the following information to answer the questions. Month January February March April May June July August September October November December Rental Days 3,240 3,060 1,150 2,260 4,310 1,270 3,410 640 1,310 3,760 1,330 2,570 Utility Costs $ 8,622 $ 8,228 $ 3,910 $ 7,684 $ 10,984 $ 4,318 $ 9,418 $ 2,176 $ 4,454 $ 9,738 $ 4,522 $ 7,868 Required: 1. Using the high-low method, estimate the fixed cost of utilities per month and the variable cost of...
ater 5b Saved Exercise 5A-1 High-Low Method (L05-10) 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 3.250 $ 9,660....
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 January February occupancy-Days 2. 2,360 March April 2.62 2,090 4,470 4,020 Electrical Costs 513,200 $14,300 $ 4.900 $ 12.100 $10,450 $ 18,860 $17,160 $ 16,760 $...
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 2,830 $ 6,750 3,340 $ 7,410 3,650 $ 7,905 1,840 $...
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 1,736 1,904 2,356 960 360 744 2,108 2,406 840 124 720 1,364 Electrical...
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 2,710 3,600 860 2,170 4,200 1,530 4,110 4,060 1,980 1,160 1,210 2,480 Electrical...
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 4,260 3,650 3,160 2,150 2,260 1,450 3,180 3,750 2,220 1,580 1,690...
Exercise 5A-1 High-Low Method (LO5-10] 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 1,736 1,904 2,356 960 360 744 2,108 2,406...