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

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


Information on occupancy and costs at the New Light Hotel


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 $100 per night. What is the contribution margin per occupied room?
In answering this, use the variable cost estimate determinedabove.

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...
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