Question 3 The costs of a hotel at two different sales levels are as follows: Monthly Room Sales 2,000 Payroll: Salaries $15,000 Wages 40,000 Employee benefits 9,200 2,000 8,000 4,000 Supplies Utilities Other operating costs Building rent Interest expense Insurance 8,000 2,000 3,000 3,000 $15,000 60,000 10,700 3,000 8,000 5,000 8,000 2,000 3,000 1. Identify each cost as fixed, variable or mixed. 2. Calculate the estimated monthly fixed costs (including the fixed portion of mixed costs). 3. Calculate the estimated variable costs per room sold.
Question 3 The costs of a hotel at two different sales levels are as follows: Monthly Room Sales 2,000 Payroll: Salaries $15,000 Wages 40,000 Employee benefits 9,200 2,000 8,000 4,000 Supplies Utilities Other operating costs Building rent Interest expense Insurance 8,000 2,000 3,000 3,000 $15,000 60,000 10,700 3,000 8,000 5,000 8,000 2,000 3,000 1. Identify each cost as fixed, variable or mixed. 2. Calculate the estimated monthly fixed costs (including the fixed portion of mixed costs). 3. Calculate the estimated variable costs per room sold.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question 3
The costs of a hotel at two different sales levels are as follows:
Monthly Room Sales
2,000
Payroll: Salaries
$15,000
Wages
40,000
Employee benefits 9,200
2,000
8,000
Supplies
Utilities
Other operating costs
Building rent
Interest expense
Insurance
4,000
8,000
2,000
3,000
3,000
$15,000
60,000
10,700
3,000
8,000
5,000
8,000
2,000
3,000
1. Identify each cost as fixed, variable or mixed.
2. Calculate the estimated monthly fixed costs (including the fixed portion of mixed costs).
3. Calculate the estimated variable costs per room sold.
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