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3LEMS PROBLEM 4-1. Cost Behavior tLO 1) The Hotel Majestic is interested in estimatieg fixed and variable costs so that the company can make more
3LEMS PROBLEM 4-1. Cost Behavior tLO 1) The Hotel Majestic is interested in estimatieg fixed and variable costs so that the company can make more accurate profections of costs and profs. The hotel is in a resort area that is particularly busy from Norember through February. In loly and August, however, the hotel has only a 50 percent occupancy rate. REQUIRED Classify each of the following conts as fixed (E), variable (V), or mixed ( M ) with respect to the number of hotel guests per month: a. Depreciation of the buildieg b. Salaries of reitarent staff c. Salaries of administrative staff (hotel manager, desk clerks, accountants, etc.) d. Soap, shampoo, and other toiletries in rooms e. Laundry costs (cost of linens, cleaniag products, depreciation of tsundry equipment, ete.) f. Food and beverage costs g. Grounds maintenance PROBLEM 4-2 Account Analysis [LO 1, 2] Lancer Audio produces a high-end DVD player that sells for $1,300. Total operating expenses for faly were as follows: REQUTRED a. Use account analysis to determine fixed cost per month and variable cost per DVD player. Assume assembly labor in a variable cost. b. Project total cost for August, assuming production and sales of 175 units. c. What is the contribution margin per DVD player? d. Estimate total profit, assuming production and sales of 175 units. e. Lancer Audio is considering an order for 120 DVD players, to be produced in the next 10 months, from a customer in Canada. The selling price will be $1,050 per unit (well under the normal selling price). However, the Lancer Audio brand name will not be attached to the product. What will be the impact on company profit associated with this ordet
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