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Incremental Analysis for Elite Hotel Should hire a new marketing supervisor or not? Elite Hotel Contribution Margin Statement For the Month Ended June 30,

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Incremental Analysis for Elite Hotel Should hire a new marketing supervisor or not? Elite Hotel Contribution Margin Statement For the Month Ended June 30, 2019 Contribution Margin Ratio? 15 % $100,000 Sales Less Variable Costs Operating Supplies Labour $55,000 30,000 85,000 Contribution Margin 15,000 Less Fixed Costs Rent Operating Profit Incremental Contribution Margin? 10,000 $5,000 $ $15,000 = 15% $100,000 If hiring a marketing supervisor, sales and fixed costs will increase by $30,000 and $2,500 respectively. SUBMIT

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