Question: Through using the high-low method, Regency Hotels estimates the total costs of providing room service meals to amount to $5,950 per month, plus 30 percent

Through using the high-low method, Regency Hotels estimates the total costs of providing room service meals to amount to $5,950 per month, plus 30 percent of room service revenue.

a. What is the contribution margin ratio of providing room service meals?

b. What is the break-even point for room service operations in terms of total room service revenue?

c. What would you expect to be the total cost of providing room service in a month in which room service revenue amounts to $15,000?


Step by Step Solution

★★★★★

3.34 Rating (169 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

a If contribution margin ratio is 40 variable costs must be 60 of sales price ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

290-B-M-A-C-V-P (1605).docx

120 KBs Word File

Students Have Also Explored These Related Managerial Accounting Questions!

Q:

Using the high-low method, Regency Hotels estimates the total costs of providing room service meals at $6,000 per month, plus 40 percent of room service revenue. a. What is the contribution margin...

Q:

Using the high-low method, Regency Hotels estimates the total costs of providing room service meals at $12,000 per month, plus 60 percent of room service revenue. a. What is the contribution margin...

Q:

What is the contribution margin ratio and how is it used?

Q:

QUESTION E20.5 Through using the high-low method. Regency Hotels estimates the total costs of providing room service meals to amount to $5, 950 per month, plus 30 percent of room service revenue. a....

Q:

Through using the high-low method, Regency Hotels estimates the total costs of providing room service meals to amount to $5,950 per month, plus 30 percent of room service revenue. Required: (a) What...

Q:

Through using the high-low method, Regency Hotels estimates the total costs of providing room service meals to amount to $5,950 per month, plus 30 percent of room service revenue. Required: (a) What...

Q:

Through using the high-low method, Regency Hotels estimates the total costs of providing room service meals to amount to $5,950 per month, plus 30 percent of room service revenue. Required: (a) What...

Q:

Through using the high-low method, Regency Hotels estimates the total costs of providing room service meals to amount to $5,950 per month, plus 30 percent of room service revenue. Required: (a) What...

Q:

Using the high-low method, Regency Hotels estimates the total costs of providing room service meals at $12,000 per month, plus 60 percent of room service revenue. a. What is the contribution margin...

Q:

Using the high-low method, Regency Hotels estimates the total costs of providing room service meals at $12,000 per month, plus 60 percent of room service revenue. a. What is the contribution margin...

Q:

The Trial Balance reports inventory of $17,253.46, but your physical count values it at $15,369.62. What is the adjusting journal entry to correct the Inventory balance? ACCOUNT DEBIT CREDIT...

Q:

A certain discrete random variable has a CDF given by (a) Find the probability mass function, px (k), of this random variable. (b) For a positive integer n, (X n) find . (c) For two positive...

Q:

In todays meeting, we were happy to have the opportunity to welcome Paul Eccelson, who reviewed the shopping cart function on our website and offered some great advice; if you have any questions...

Q:

13. Suppose the risk premium on bonds increases. How would the change affect your forecast of future economic activity? Why?

Q:

Dinklemyer Corporation uses direct labor hours as its single cost driver. Actual overhead costs and actual direct labor hours for the first five months of the current year are as follows. a . Compute...

Q:

Yi Corporation produces a large number of fishing products. The costs per unit of a particular fishing reel are as follows. The company recently decided to buy 8,000 fishing reels from another...

Q:

Fox Run Outfitters manufactures lightweight frames that it uses in several of its backpack products. Management is considering whether to continue manufacturing the frames or to buy them from an...

Q:

A company is considering two mutually exclusive expansion plans. Plan A requires a $40 million expenditure on a large-scale integrated plant that would provide expected cash flows of $6.39 million...

Q:

Using this problem answer the following questions (see additional attachment) A. Unconditional probabilities-You are drawing from a standard deck of 52 cards with four suits (hearts, diamonds, clubs,...

Q:

5. Exchange rates and the demand for domestic goods. Piano Palace Co. produces electronic keyboards in the United States. Its most popular keyboard sells for $1,400. KeySharp Co., Piano Palace's...