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 hotels business is highly seasonal, with peaks occurring during the ski season and in the summer.
Month Occupancy Days Electrical Cost
Jan 2604 $6257
Feb 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
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.
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