Answered Essay: The Lakeshore Hotel’s guest-days of occupancy and custodial supplies expe

The Lakeshore Hotel’s guest-days of occupancy and custodial supplies expense over the last seven months were:
    Month Guest-Day of Occupancy Custodial Supplies Expense
    March 4,000 $ 7,500
    April     6,500 $ 8,250
    May 8,000 $ 10,500
    June 10,500 $ 12,000
    July 12,000 $ 13,500
    August 9,000 $ 10,750
    September 7,500 $ 9,750
Guest-days is a measure of the overall activity at the hotel. For example, a guest who stays at the hotel for three days is counted as three guest-days.
1. Using the high-low method, estimate a cost formula for custodial supplies expense. (Round the Variable cost per guest-day to 2 decimal points.)


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 11,000 guest-days? (Do not round your intermediate calculations.)


3. Prepare a scattergraph using the data given above. (Place custodial supplies expense on the vertical axis and guest-days on the horizontal axis.)



1. On the graph below, use the point tool (Mar) to plot custodial supplies expense on the vertical axis and guest-days on the horizontal axis.
2. Repeat the same process for the plotter tools (Apr, May, June, July, Aug, Sep).
3. To enter exact coordinates, click on the point and enter the values of x and y.
4. To remove a point from the graph, click on the point and select delete option.


Expert Answer


(1) Total cost (C) = F + V x Q, where F Fixed cost, V: Unit varible cost, Q: Number of Guest-days

Using high-low method,

V = (Total cost when Q is maximum – Total cost when Q is minimum) / (Maximum Q – Minimum Q)

= $(13,500 – 7,500) / (12,000 – 4,000) = $6,000 / 8,000 = $0.75

When Q = 4,000 days, C = $7,500

7,500 = F + 0.75 x 4,000

7,500 = F + 3,000

F = $4,500

Total cost equation: C ($) = 4,500 + 0.75Q

(2) When Q = 11,000,

C ($) = 4,500 + (0.75 x 11,000) = 4,500 + 8,250 = 12,750

(3) Scatterplot as follows.

Buy Essay
Calculate your paper price
Pages (550 words)
Approximate price: -

Help Me Write My Essay - Reasons:

Best Online Essay Writing Service

We strive to give our customers the best online essay writing experience. We Make sure essays are submitted on time and all the instructions are followed.

Our Writers are Experienced and Professional

Our essay writing service is founded on professional writers who are on stand by to help you any time.

Free Revision Fo all Essays

Sometimes you may require our writers to add on a point to make your essay as customised as possible, we will give you unlimited times to do this. And we will do it for free.

Timely Essay(s)

We understand the frustrations that comes with late essays and our writers are extra careful to not violate this term. Our support team is always engauging our writers to help you have your essay ahead of time.

Customised Essays &100% Confidential

Our Online writing Service has zero torelance for plagiarised papers. We have plagiarism checking tool that generate plagiarism reports just to make sure you are satisfied.

24/7 Customer Support

Our agents are ready to help you around the clock. Please feel free to reach out and enquire about anything.

Try it now!

Calculate the price of your order

Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.


Let us write that nagging essay.


Submit Your Essay/Homework Instructions

By clicking on the "PLACE ORDER" button, tell us your requires. Be precise for an accurate customised essay. You may also upload any reading materials where applicable.


Pick A & Writer

Our ordering form will provide you with a list of writers and their feedbacks. At step 2, its time select a writer. Our online agents are on stand by to help you just in case.


Editing (OUR PART)

At this stage, our editor will go through your essay and make sure your writer did meet all the instructions.


Receive your Paper

After Editing, your paper will be sent to you via email.

× How can I help you?