Question

# Problem 1. The Jedi Hotel has been tracking its property repairs and maintenance costs (PR&M) over...

 Problem 1. The Jedi Hotel has been tracking its property repairs and maintenance costs (PR&M) over the past year. The results were as follows for the year: The Jedi Hotel Month Activity (Room Nights Sold) PR&M Costs January 2050 \$6,180 February 2800 \$7,195 March 3200 \$7,564 April 3800 \$7,840 May 4100 \$8,763 June 4350 \$10,700 July 4700 \$11,161 August 4900 \$11,991 September 4500 \$10,977 October 3300 \$7,656 November 2700 \$7,102 December 2400 \$6,641 Required: Using the high-low two point method: 1. Calculate the variable cost per room night sold. 2. Calculate the monthly fixed PR&M cost. 3. Estimate the total amount that the Jedi Hotel will spend on PR&M cost when the forecasted activity level for the month is: 9224 room nights

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