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| Teaching Since: | May 2017 |
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| Questions Answered: | 66690 |
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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
A hotel wishes to analyze its electricity cost in its rooms department in terms of fixed and variable elements. Monthly income statements show that during its busiest and slowest months, cost and rooms occupied information is as follows:
| Â |
Rooms Cost |
Rooms Sold |
|
Busiest |
$2,600 |
2,400 |
|
Slowest |
2,000 |
1,200 |
Use the high–low method to calculate the following:
a. Variable cost per room occupied
b. Total variable cost for the busiest and the slowest month
c. Total fixed cost per month
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