Information on occupancy and costs at the Light House 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. Round to two decimal places.
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 part b.

Transcribed Image Text:

April May June Occupancy Day manager salary Night manager salary Cleaning staff Depreciation Complimentary continental 1,850 S 4,500 3,900 16,275 12,500 1,700 1,950 4,500 3,900 16,590 12,500 4,500 3,900 15,960 12,500 breakfast:food and beverages 5,050 $41,910 5,205 $42,380 5,225 $42,715 Total