The following information is available for your Lucro Island Hotel. September October November December Sales (average No.
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Question:
The following information is available for your Lucro Island Hotel.
September | October | November | December | |
Sales (average No. of rooms per day) | 25 | 26 | 28 | 27 |
Total cost per month | $120,000 | $119,240 | $123,600 | $123,480 |
REQUIRED:
a) Using the high-low method, estimate the cost formula for Lucro Island Hotel. (3 marks)
b) Using the cost formula determined in part (a) above, estimate total expenses for January based a projected sales of an average 27 rooms per day for the month of January. Show your workings. (2 marks)
Submit your answer in text form below.
Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
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