nr rs The Lakeshore follows Hotels occupancydays and custodi

nr rs The Lakeshore follows: Hotel\'s occupancy-days and custodial supplies expense ov Month March April May June July August September upplies Occupancy-Days 10,500 10,700 12,400 20,500 29,100 20,200 16,200 Expense $ 20,200 20,320 21,640 26,200 31,360 24,670 22,970 Occupancy-days are a measure of the overall activity at the hotel For examp 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 exper Variable cost\" to 2 decimal places.) Y $ 13.90 + 0.60 wwwas 2. Using the cost formula you derived above. what amount of custodial supplies exper to be incurred at an occupancy level of 15.400 occupancy-days? Variable cost Eixed cost Total cost Ask me anythi

Solution

2)

Variable cost:

= 15,400×$0.60

= $9,240

Fixed costs:

= $22,970-$13,900

= $9,070

Total cost:

= $9,070+$9,240

= $18,310