Prairie Motels has a total of 3 , 4 0 0 rooms in its chain of motels
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Question:
Prairie Motels has a total of rooms in its chain of motels located in eastern Canada. On average, of rooms are occupied each day. The company's operating costs are $ per month. This $ contains both variable and fixed cost elements. During April, the occupancy rate dropped to only A total of $ in operating costs was incurred during April.
Required:
Estimate the variable cost per occupied room per day Do not round the intermediate calculation and round your final, answer to two decimal places
Estimate the total fixed costs per month.
Assume that the occupancy rate increases to during May. What total operating cost would you expect the company to incur in May?
Related Book For
Managerial Accounting
ISBN: 9781260193275
12th Canadian Edition
Authors: Ray H. Garrison, Alan Webb, Theresa Libby
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