cost concept

25% a year. Calculate the present net income of each hotel with tax rate of 20%. Then, given these assumptions, advise the entrepreneurs which one they should buy, including any cautionary comments if necessary. (5 points) 2. Your client is requesting your assistance in determining a cost equation for forecasting his expenses for his restaurant. He provides costs at two extremes as follows: (3 points) Monthly Covers 4.000 8.000 Cost of food sold Salaries $16,000 10,000 $32,000 Wages 10,000 Employee benefits 12,000 24,000 Supplies 6,000 8,000 Utilities 3,000 6,000 Rent 2,000 3,000 6,000 Other operating costs 6,000 Insurance 4,000 2,500 5,000 Depreciation Property taxes 1,200 2,500 1,200 1,500 1,500 Required: 1. Identify each cost as fixed, variable or mixed. 2. What are the estimated monthly fixed costs (including the fixed portion of mixed costs)? 9S 3. What are the estimated variable costs per cover sold? 4. Develop a single equation to estimate costs at various levels of activity. 5. Project the total costs if 4,500 covers are sold using the equation from part 4