The edelweiss hotel in vail, colorado, has accumulated records of the

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.


Leave a Reply

Your email address will not be published. Required fields are marked *

× How can I help you?