Calculate the fixed costs per month

Reference no: EM1350611

Account Analysis, High-Low, Contribution Margin
Information on occupancy and costs at the Starlight Hotel for June, July and August are indicated below:

June July August
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 and beverages 4,600 5,300 5,800
Total $39,800 $40,800 $41,600

Required

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

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: EM1350611

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