Question

Information on occupancy and costs at the New Light Hotel for April, May, and June are indicated below:


Required
a. Calculate the fixed costs per month and the variable cost per occupied room using account analysis for April.
b. Calculate the fixed costs per month and the variable cost per occupied room using the high- low method.
c. Average room rates are $120 per night. What is the contribution margin per occupied room?
In answering this question, use your variable cost estimate from partb.


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  • CreatedSeptember 18, 2013
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