What is the unit contribution margin per room

Assignment Help Managerial Accounting
Reference no: EM132825259

Question - The Gibco Inn is trying to determine its break-even point.

The inn has 74 rooms available that are rented at $85 a night. Operating costs are as follows:Salaries $14,000/month

Utilities $2,200/month

Depreciation $1,000/month

Maintenance $550/month

Housekeeping Service: $22 per room

Other Costs: $4 per room

a) What is the unit contribution margin per room?

b) Determine the break-even point in number of

(1) rented rooms /month

(2) sales dollars/month

Reference no: EM132825259

Questions Cloud

How sound science essential for sustainable global future : Ecological sustainability means that we conserve the productivity of the waters, soils, and the ecosystem, reducing our impact on the natural environment.
Post to T accounts the accounts receivable : Journalize the above transactions. Open the customer's and supplier's cards. Post to T accounts the accounts receivable and accounts payable entries
Compute the cash flow invested in net working capital : Compute the cash flow invested in net working capital at Hillman Corporation during 2017. Hillman Corporation reported current assets of $3,495,055
What was leia retained earnings balance : Based on these two assumptions AND the impact of the entries you made for the property dividend, what was Leia's retained earnings balance as of 03-31-16?
What is the unit contribution margin per room : The inn has 74 rooms available that are rented at $85 a night. Operating costs are as follows:Salaries $14,000/month. What is the unit contribution margin
Prepare the adjusting journal entries for grant graphics : Prepare the adjusting journal entries based on the following information. (Credit account titles are automatically indented when amount is entered.)
Which is the worlds largest radio telescope : 1. Which is the Nebula which is considered to be the remnant of a Super Nova explosion?
What are the decision variables for given problem : Using Decision variable indentified in part (a) formulate the objective function for this problem. is the qty of interest to me minimised or maximised
Human resource management association in the world : 1) What organization is the largest human resource management association in the world? And how does it meet the needs of HR professionals?

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Should the land be included in the analysis

Land whether or not the expansion project is accepted, the current appraisal value is irrelevant. Should the land be included in the analysis? If so, how?

  Advise mr litali on how many orders should make in a year

The monthly demand is estimated at 4,550 chipsets while the ordering cost is pegged at Kshs 150,000. Advise Mr. Litali on how many orders should make in a year.

  Describe the process costing method

Describe the Process Costing method their characteristics, features and challenges; and their application in manufacturing industries.

  What does the x represent

y? = $5.45x? + $355 is a cost equation. What does the "x" represent? Variable cost per unit./ Units produced./ Total fixed costs./ Total costs

  Which department should be dropped so as to the greatest

Regardless of your decision, fixed costs will be reduced by 25%. Which department should be dropped so as to give the greatest benefit to the company?

  Calculate the gain or loss on the sale

Using incremental analysis, determine whether Riverside Hospital should purchase the new scanner on January 2, 2020. (If an amount reduces the net income)

  What is the probability of getting more than 12000 hits

Travelbus is an Internet-based travel agency wherein customers can see videos of the cities they plan to visit. What is the probability of getting more than 12,000 hits

  Calculate the overhead costs allocated to the sanko muffler

Calculate the overhead costs allocated to the Spectra Carburetor and the overhead cost per unit. Calculate the overhead costs allocated to the Tek Engines

  Ethical considerations

The assignment must be completed individually and submitted before the due date to avoid any late penalties. Please make sure you follow the guidelines noted in your subject outline especially those relating to presentation of written work, late p..

  Find how much advertising would allocate to irvine center

How much advertising would be allocated to the Irvine center? Management of Wee Ones (WO), an operator of day-care facilities, wants the company's profit

  Which product should produce and sell to maximize profits

Assuming that the company could sell as much of each product as it produces which product should it produce and sell to maximize profits?

  What will be preference for taking on proposed new product

Daffodil Corporation, requires a minimum return on investment of 8%, what will be the preference for taking on the proposed new product?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd