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Levis Limited is a large-scale hotel just south of Quebec City. The following chart compares Visitor Days (the number of hotel rooms rented out per
Levis Limited is a large-scale hotel just south of Quebec City. The following chart compares Visitor Days (the number of hotel rooms rented out per one day) to Sales Commission Costs (the amount of money paid to third-party booking agencies). Month January February March April May June July August September October November December Visitor Days 12,600 11,800 18,700 15,800 17.900 19,400 19,600 16,700 18,000 13,500 11,900 14,500 Sales Commission Cost $54,600 $52,900 $75,900 $60,000 $63,500 $78,300 $78,500 $64 200 $73,000 $57,900 $54,500 $59,000 Required (a) Compute the fixed cost of sales commission per month and variable cost of sales commission per visitor day. Round each number to the nearest cent. Show all your work for full marks. (9 marks) (b) Derive the cost equation for sale commission costs. Show all your work for full marks. (3 marks) Midterm continues on the next page
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