Knowing that Regency Hotels estimates the total costs of providing room service meals at $15,000 per month, plus 75 percent of room service revenue, please answer the following MCQ questions

A small hint : calculate contribution margin first

Contribution margin 25%

The total cost of providing room service in a month in which room service revenue amounts to $90,000 is $22,500

The contribution margin ratio of providing room service meals amounts to $15,000 X 75% Select one:

True

False