PROBLEM 4-6. Account Analysis, High-Low, Contribution Margin Information on occupancy and costs at the Regal Hotel for April, May, and June are indicated below:

April May June Occupancy 1,500 1,650 1,800 Day manager salary $ 4,000 $ 4,000 $ 4,000 Night manager salary 3,500 3,500 3,500 Cleaning staff 15,000 15,300 15,600 Depreciation 10,000 10,000 10,000 Complimentary continental breakfast:

food and beverages 4,500 5,000 5,500

$37,000 $37,800 $38,600 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 $85 per night. What is the contribution margin per occupied room? In answering this question, use your variable cost estimate from Part b.