Exercise 2-31 Fixed, Variable, Marginal, and Average Costs; Hotel (L02-1, 2-8, 2-10) A hotel pays the phone company $100 per month plus $.25 for each call made. During January 6,000 calls were made. In February 5,000 calls were made. Required: 1. Calculate the hotel's phone bills for January and February. 2. Calculate the cost per phone call in January and in February. Chapter 2 Basic Cost Management Concepts 3. Separate the January phone bill into its fixed and variable components. 4. What is the marginal cost of one additional phone call in January? 5. What was the average cost of a phone call in January? 69

Exercise 2-31 Fieed, Vanuble, Murginal and Average Costs, Hotel (1021,28,210) A hotel pays the phone company 5100 per moath plus 5.25 for each call made. During January 6,000 calls were made. In February 5,000 calls were made. Required: 1. Calculate the hotel's phone bills for January and February. 2. Calculate the cost per phone call is January and in February. Chapter 2 Basic Cos Managenent Concepts 69 3. Separale the January phone bill into its fixed and variable components. 4. What is the marginal cost of one additional phone call in January? 5. What was the average cost of a phope call in January