Average room rates are 110 per night what is the

Reference no: EM13598832

April May June
Occupancy 1,500 1,650 1,800
Day manager salary 4,200 4,200 4,200
Night manager salary 3,700 3,700 3,700
Cleaning staff 15,300 15,600 15,900
Depreciation 12,000 12,000 12,000
Complimentary continental breakfast:
Food & beverages 4,600 5,300 5,800
TOTAL 39,800 40,800 41,600

a.Calculate the fixed costs per month and the variable cost per occupied room using account analysis for April.

b.Calculate the fixed costs per month and the variable cost per occupied room using the high-low method.

c.Average room rates are $110 per night. What is the contribution margin per occupied room? In answering this question, use your variable cost estimate from Part b.

Reference no: EM13598832

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