1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ohaa [14]
3 years ago
13

The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the hotel and the number of occ

upancy-days over the last year. An occupancy-day represents a room rented out for one day. The hotel's business is highly seasonal, with peaks occurring during the ski season and in the summer. Month Occupancy- Days Electrical Costs January 3,030 $ 9,044 February 3,080 $ 9,234 March 3,980 $ 11,913 April 1,630 $ 6,194 May 1,270 $ 4,826 June 2,110 $ 8,018 July 650 $ 2,470 August 3,690 $ 11,552 September 1,960 $ 7,448 October 4,410 $ 12,998 November 1,600 $ 6,080 December 2,230 $ 8,474 Required: 1. Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy-day. (Do not round your intermediate calculations. Round your Variable cost answer to 2 decimal places and Fixed cost element answer to nearest whole dollar amount) 2. What other factors other than occupancy-days are likely to affect the variation in electrical costs from month to month
Business
1 answer:
Degger [83]3 years ago
6 0

Answer:

1.Occupancy days $3,760

Electrical costs $10,528

Variable cost=2.80

Fixed cost=$650

2. Seasonal factors

Systematic factors

Number of days

Explanation:

1.Calculation using high and low method for both Occupancy days and Electricity cost

Occupancy Electrical

Days Costs

High activity level 4,410 12,998

Low activity level 650 2,470

Change 3,760 10,528

Calculation for Variable cost of electricity per occupancy-day.

Using this formula

Variable cost= Electricity cost/Occupancy days

Let plug in the formula

Variable cost=10,528/3,760

Variable cost=2.80

Calculation for Fixed cost of electricity per month

Fixed cost=2,470-(650*2.80)

Fixed cost=2,470-1,820

Fixed cost=$650

2. Factors that are likely to affect the variation in electrical costs from month to month will include the following:

Seasonal factors

Systematic factors

Number of days

Seasonal factors can either be winter or summer.

Systematic factors include either having guests, To switch off fans as well as lights.

Number of days are days that are present in a month.

You might be interested in
9. When Margot applies for a loan, she needs to demonstrate to the bank that she has capital. What could she show them to best d
Sidana [21]

Answer:

copies of her mortgage, investment reports, and bank statements

Explanation:

The only option that properly demonstrates her capital would be copies of her mortgage, investment reports, and bank statements. Her mortgage shows the bank that she is able to pay her debt on time every month. Her bank statements show how much money she is spending on a monthly basis. Lastly, her investment reports show all of her assets and how much they are earning per month, all of this combined makes up her capital which is basically the amount of money she has, both liquid and in assets.

3 0
3 years ago
A company's board of directors votes to declare a cash dividend of $.75 per share of common stock. The company has 15,000 shares
Norma-Jean [14]

Answer:

The total amount of the cash dividend is $7,125

Explanation:

The Dividend is declared to pay all the outstanding shares in the market. Sometime the company has some treasury shares in the stocks which is deducted from the total issued shares to find the outstanding shares. In this case, the issued shares and the outstanding numbers of shares are different.

Treasury shares are those shares that are bought back by the company that issued the shares.

Use the following formula to calculate the cash dividend

Cash Dividend = Numbers of outstanding shares x Dividend rate

Where

Numbers of outstanding shares = 9,500 shares

Dividend rate = $0.75 per share

Placing values in the formula

Cash Dividend = 9,500 x $0.75 per share

Cash Dividend = $7,125

3 0
2 years ago
Juan argued that bluegrass is the best food for cattle in the Midwest. Sammy objected by citing how the authorities at the U.S.
seropon [69]

Answer:

committed the fallacy of avoiding the issue.

Explanation:

The fallacy of avoiding the issue is also called the fallacy of irelevant conclusion or a red herring.

It occurs when an individual avoids dealing with an issue that he has a problem with.

In the given scenario the issue is whether bluegrass is better than Alfa Alfa for cattle in the Midwest.

Instead of Juan to address the issue he is arguing that the U.S. Department of Agriculture is a bloated bureaucracy with too much fat that deserves to be cut in the next federal budget bill.

He is not addressing the main issue

8 0
3 years ago
What business structure automatically reinvests profits in the corporation?
zhuklara [117]

Answer:

A sole proprietorship

Explanation:

7 0
3 years ago
Grays Company has inventory of 16 units at a cost of $11 each on August 1. On August 3, it purchased 26 units at $10 each. 18 un
Lelechka [254]

Answer:

Cost of goods sold is $196

Explanation:

Using FIFO inventory sold are valued at the price of the most earliest stock in inventory.

The 16 units would be valued at $11 per one while the remaining 2 units would be valued at price of the purchase made on August 3 which cost $10 each

costs of goods sold=($11*16)+($10*2)

                                =$176+$20=$196

The costs of goods sold would be $196 if FIFO method of inventory valuation is used

6 0
3 years ago
Other questions:
  • Explain why some people would rather risk taking a loss in a business of their own rather than work for a wage
    13·1 answer
  • Smartphones, ipads, and other mobile devices used to watch videos are sometimes referred to as ______.
    7·2 answers
  • You consider purchasing a new computing system, including networking, for your sales force for $112,000. The system has a 6-year
    11·1 answer
  • A broker desires to keep an escrow account in an interest bearing account. Would this be legal?
    9·1 answer
  • Alpha can produce either 18 oranges or 9 apples an hour, while Beta can produce either 16 oranges or 4 apples an hour. If the te
    14·1 answer
  • An economic system that operates mainly on private transactions where firms are free to make their own production, distribution
    5·1 answer
  • Due to increased mailing costs, the new rate will cost publishers $50 million: this is 12.5 % more than they paid the previous y
    14·1 answer
  • Acton Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its m
    10·1 answer
  • Bloomfield Bakers accounts for its investment in Clor Confectionary under the equity method. Bloomfield carried the Clor investm
    9·1 answer
  • The study of principles that govern the efficient spatial allocation of economic resources and the resulting consequences is ref
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!