ase costE Problem 8 The Boyton Motel's costs at two different sales levels are as followe: Monthly Room Sales 2,000 3,000 Payroll: Salaries $15,000 40,000 9,200 2,000 8,000 4,000 8,000 2,000 3,000 $15,000 60,000 10,700 Wages Employee benefits Supplies Utilities eu 3,000 8,000 don5,000 Other operating costs Building rent Interest expense 8,000 2,000 3,000 Insurance Required: JauguA 1sdmaiq 1. Identify each cost as fixed, variable, or mixed. 2. What are the total estimated monthly fixed costs? 19dmovo adrasoo 3. What are the total estimated variable costs per room sold? 4. Develop a single equation to estimate total costs at various levels of activity. 5. Project the total costs if 3,500 rooms are sold.
ase costE Problem 8 The Boyton Motel's costs at two different sales levels are as followe: Monthly Room Sales 2,000 3,000 Payroll: Salaries $15,000 40,000 9,200 2,000 8,000 4,000 8,000 2,000 3,000 $15,000 60,000 10,700 Wages Employee benefits Supplies Utilities eu 3,000 8,000 don5,000 Other operating costs Building rent Interest expense 8,000 2,000 3,000 Insurance Required: JauguA 1sdmaiq 1. Identify each cost as fixed, variable, or mixed. 2. What are the total estimated monthly fixed costs? 19dmovo adrasoo 3. What are the total estimated variable costs per room sold? 4. Develop a single equation to estimate total costs at various levels of activity. 5. Project the total costs if 3,500 rooms are sold.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter2: Basic Managerial Accounting Concepts
Section: Chapter Questions
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4. Develop a single equation to estimate total costs at various levels of activity.
5. Project the total costs if 3,500 rooms are sold.
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