Question: Hotel Majestic is interested in estimating fixed and variable co

Hotel Majestic is interested in estimating fixed and variable costs so that the company can make more accurate projections of costs and profit. The hotel is in a resort area that is particularly busy from November through February. In July and August, however, the hotel has only a 50 percent occupancy rate.

Required
Classify each of the following costs as fixed (F), variable (V), or mixed (M) with respect to the number of hotel guests per month:
______a. Depreciation of the building
______b. Salaries of restaurant staff
______c. Salaries of administrative staff (hotel manager, desk clerks, accountants, etc.)
______d. Soap, shampoo, and other toiletries in rooms
______e. Laundry costs (cost of linens, cleaning products, depreciation of laundry equipment, etc.)
______f. Food and beverage costs
______g. Grounds maintenance


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  • CreatedSeptember 18, 2013
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