Homework answers / question archive / The Lakeshore Hotel's occupancy-days and custodial supplies expense over the last seven months were as follows:       Occupancy-Days Expense     March9,600       $15,480             April9,800        15,640             May12,700        18,260             June20,500        24,200             July28,200        30,360             August19,600        22,130             September15,900        19,870                 Occupancy-days are a measure of the overall activity at the hotel

The Lakeshore Hotel's occupancy-days and custodial supplies expense over the last seven months were as follows:       Occupancy-Days Expense     March9,600       $15,480             April9,800        15,640             May12,700        18,260             June20,500        24,200             July28,200        30,360             August19,600        22,130             September15,900        19,870                 Occupancy-days are a measure of the overall activity at the hotel

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The Lakeshore Hotel's occupancy-days and custodial supplies expense over the last seven months were as follows:

  

  

Occupancy-Days Expense    

March9,600       $15,480            

April9,800        15,640            

May12,700        18,260            

June20,500        24,200            

July28,200        30,360           

 August19,600        22,130            

September15,900        19,870        

 

      Occupancy-days are a measure of the overall activity at the hotel. For example, when a guest stays at the hotel for three days, it is counted as three occupancy-days.

 

Required:1.Using the high-low method, estimate a cost formula for custodial supplies expense. (Round the "Variable cost" to 2 decimal places.)

  

      Y= + X

 

2.Using the cost formula you derived above, what amount of custodial supplies expense would you expect to be incurred at an occupancy level of 14,800 occupancy-days?

  variable cost:

fixed cost:

total cost: