Maurice Tutor

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About Maurice Tutor

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Algebra,Applied Sciences See all
Algebra,Applied Sciences,Biology,Calculus,Chemistry,Economics,English,Essay writing,Geography,Geology,Health & Medical,Physics,Science Hide all
Teaching Since: May 2017
Last Sign in: 402 Weeks Ago, 5 Days Ago
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Education

  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

Experience

  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 24 Aug 2017 My Price 9.00

Great Eastern Inns

EXERCISE 3–10 High–Low Method; Predicting Cost [LO2]

Great Eastern Inns has a total of 2,000 rooms in its chain of motels located in eastern Canada. On average, 70% of the rooms are occupied each day. The company’s operating costs are $42 per occupied room per day at this occupancy level, assuming a 30-day month. This $42 figure contains both variable and fixed cost elements. During February, the occupancy rate dropped to only 45%. A total of $1,584,000 in operating cost was incurred during February.

Required:

1.               Estimate the variable cost per occupied room per day.

2.               Estimate the total fixed operating costs per month.

3.               Assume that the occupancy rate increases to 50% during March. What total operating costs would you expect the company to incur during March?

 

Answers

Maurice Tutor
(5)
Status NEW Posted 24 Aug 2017 12:08 AM My Price 9.00

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