What is the contribution margin per occupied room

Reference no: EM13299428

Information on occupancy and costs at the New Light Hotel for April, May and June are indicated below:

-------------------------------------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 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 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: EM13299428

Questions Cloud

What are the cash flows to tom under each scenario : The company needs a cash infusion of $1.5 million, and it can issue equity or issue debt with an interest rate of 9 percent. Assume there are no corporate taxes.

Evaluate the distance between the charges : Two point charges of equal mass start from rest. What is the distance between the charges and How long will it take the charges to move

Determine the dimensions of an ideal circular settling tank : determine the dimensions of an ideal circular settling tank that can remove 0.01-in diameter particles with a specific gravity of 1.01. Use a detention time of 1.5 hours, flowrate= 4ft^3/sec, the specific weight of water=62.4 lb/ft^3

Determine what should be the removal efficiency : The regulatory agency has told the company to maintain a salt level pf no greater then 250 mg/L downstream of the discharge. what should the removal efficiency. (percentage of the salt removed) of a process designed to remove salt from the waste w..

What is the contribution margin per occupied room : 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.

Calculate how much work does she do : If you are going to do this, please show your work!! DO NOT just give an answer. A woman lifts a 2.00-kg weight held in her hand. find how much work does she do

What is the contribution margin per dvd player : The selling price will be $900 per unit (well under the normal selling price). However, the Lancer Audio brand name will be attached to the product. What will be the impact on company profit associated with this order?

Determine what will be the max torque of a solid steel shaft : A solid steel shaft of circular cross section and diameter 6 inches in pure torsion under torque. If E=30x10^6 pse and max shear stress is 30 ksi, calculate the torque. If the shaft was hollow, with an innner diameter of 2 inches and outer diameter..

What is the current value of a share of seneca common stock : What is the current value of a share of Seneca common stock to an investor who requires a 14 percent rate of return?

User Account

All Pages