Answer:
cost formula: Total cost = F + (V x Q) = $4,500 + ($0.75 x Q)
- F = fixed costs = $4,500
- V = variable costs = $0.75 per guest day
- Q = number of guest days
Explanation:
month occupancy supplies expenses
march 4,000 $7,500
april 6,500 $8,250
may 8,000 $10,500
june 10,500 $12,000
july 12,000 $13,500
august 9,000 $10,750
september 7,500 $9,750
high activity level 12,000 $13,500
low activity level 4,000 $7,500
variation 8,000 $6,000
variable cost per guest-day = $6,000 / 8,000 = $0.75
fixed costs per month = $13,500 - (12,000 x $0.75) = $4,500
cost formula: Total cost = F + (V x Q)
F = fixed costs = $4,500
V = variable costs = $0.75 per guest day
Q = number of guest days
