MANAGERIAL ACCOUNTING F/MGRS.
6th Edition
ISBN: 9781264100590
Author: Noreen
Publisher: RENT MCG
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Chapter 2A, Problem 2A.12C
1.
To determine
Introduction: : The high-low method is used to find fixed and variable cost in a limited amount of provided data. It can determine the variable and fixed cost if fixed cost is constant and variable is same on every unit, by system of equation.
To prepare: Scattered graph for labor and
2.
To determine
Introduction: Least square method are those methods which separate the mixed cost into two classes such as variable and fixed cost with use of regression line that reduce sum of squared errors.
To express: The fixed and variable component in the form of
3.
To determine
Introduction: : The high-low method is used to find fixed and variable cost in a limited amount of provided data. It can determine the variable and fixed cost if fixed cost is constant and variable is same on every unit, by system of equation.
To calculate: The contribution margin earns by service the event.
4.
To determine
Introduction: : The high-low method is used to find fixed and variable cost in a limited amount of provided data. It can determine the variable and fixed cost if fixed cost is constant and variable is same on every unit, by system of equation.
The strength of bidding for charity event in terms of price per guest and still break even on the list.
5.
To determine
Introduction: The high-low method is used to find fixed and variable cost in a limited amount of provided data. It can determine the variable and fixed cost if fixed cost is constant and variable is same on every unit, by system of equation.
To calculate: Total operating cost of the truck if it were driven 80,000 kilometer.
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Analyze Cityscape Hotels
Cityscape Hotels has 200 rooms available in a major metropolitan city. The hotel is able to attract business customers during the weekdays and leisure customers during the weekend. However, the leisure customers on weekends occupy fewer rooms than do business customers on weekdays. Thus, Cityscape plans to provide special weekend pricing to attract additional leisure customers. A hotel room is priced at $180 per room night. The cost of a hotel room night includes the following:
Line Item Description
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Housekeeping service
$23
Utilities
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Amenities
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Hotel depreciation
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Hotel staff (excluding housekeeping)
42
Total
$130
The special weekend price is proposed for $120 per room night. At this price, it is anticipated that average occupancy for the weekend (Friday, Saturday, and Sunday) will increase from 30% to 50% of available rooms.
Question Content Area
a. What is the contribution margin for a…
Analyze Cityscape Hotels
Cityscape Hotels has 200 rooms available in a major metropolitan city. The hotel is able to attract business customers during the weekdays and leisure customers during the weekend. However, the leisure customers on weekends occupy fewer rooms than do business customers on weekdays. Thus, Cityscape plans to provide special weekend pricing to attract additional leisure customers. A hotel room is priced at $180 per room night. The cost of a hotel room night includes the following:
Cost Per Room Night(at normal occupancy)
Housekeeping service
$23
Utilities
7
Amenities
3
Hotel depreciation
55
Hotel staff (excluding housekeeping)
42
Total
$130
The special weekend price is proposed for $120 per room night. At this price, it is anticipated that average occupancy for the weekend (Friday, Saturday, and Sunday) will increase from 30% to 50% of available rooms.
Analyze Cityscape Hotels
Cityscape Hotels has 200 rooms available in a major metropolitan city. The hotel is able to attract business customers during the weekdays and leisure customers during the weekend. However, the leisure customers on weekends occupy fewer rooms than do business customers on weekdays. Thus, Cityscape plans to provide special weekend pricing to attract additional leisure customers. A hotel room is priced at $180 per room night. The cost of a hotel room night includes the following:
Cost Per Room Night(at normal occupancy)
Housekeeping service
$23
Utilities
7
Amenities
3
Hotel depreciation
55
Hotel staff (excluding housekeeping)
42
Total
$130
The special weekend price is proposed for $120 per room night. At this price, it is anticipated that average occupancy for the weekend (Friday, Saturday, and Sunday) will increase from 30% to 50% of available rooms.
a. What is the contribution margin for a…
Chapter 2A Solutions
MANAGERIAL ACCOUNTING F/MGRS.
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