Exercise 2-31 Fixed, Variable, Marginal, and Average Costs; Hotel (LO 2-1, 2-8, 2-10)

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[The following information applies to the questions displayed below.] A hotel pays the phone company $100 per month plus $0.25 for each call made. During January 6,000 calls were made. In February 5,000 calls were made.

Exercise 2-31 Part 1

Required: 1. Calculate the hotel's phone bills for January and February.