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Category > Accounting Posted 12 Aug 2017 My Price 13.00

Hotel in Vail, Colorado

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 hotel's business is highly seasonal, with peaks occurring during the ski season and in the summer.

 

Month Occupancy-
Days		 Electrical
Costs
January 3,180 $6,510
February 2,920 $6,261
March 3,780 $7,392
April 2,160 $5,569
May 650 $1,820
June 2,050 $5,261
July 4,050 $7,829
August 4,070 $7,896
September 1,780 $4,984
October 570 $1,596
November 1,580 $4,424
December 2,680 $5,908

 

Required:
1.

Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy-day. (Round the "Variable cost per occupancy-day" to 2 decimal places and the "Fixed cost" to the nearest dollar amount. Omit the "$" sign in your response.)

 

     
Fixed cost $ per month
Variable cost $ per occupancy-day

 

2.

What other factors other than 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.)
   
 
  Seasonal factors like winter or summer.
  Systematic factors like guests, switching off fans and lights.
  Number of days present in a month.
  Fixed salary paid to hotel receptionist.
  Income taxes paid on hotel income.

 

Answers

Maurice Tutor
(5)
Status NEW Posted 12 Aug 2017 02:08 PM My Price 13.00

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