Marriott International, Inc. uses operating costing for its hotel services. In July 2038, the company incurs $60,000,000 in costs distributed as follows:

• Room Operations: $30,000,000
• Food and Beverage: $20,000,000
• Administration: $10,000,000

Requirements:

• Classify each cost as fixed or variable.
• Perform a service costing analysis for room operations and food and beverage.
• Prepare a cost allocation schedule.
• Analyze the impact of cost allocation on service pricing and profitability.
• Recommend strategies to enhance service delivery and cost management.