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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.
Required:
1) Using the high / lo method, estimate the fixed cost of electricity per month and the variable cost of electricty per occupancy-day. Round off the fixed cost to the nearest whole dollar and the variable cost to the nearest whole cent.
2) What other factors other than occupancy-days are likely to affect the variation in electrical costs from month to month?
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