PROBLEM 4-2. Account Analysis [LO 1, 2] Lancer Audio produces a high-end DVD player that sells for $1,300. 'Total operating expenses for July were as follows:

. TMobile a\" 09:46 a 97% [it ,. ........... ________________ ., 7| 0 161 .5 + ea 3 PROBLEM 41. Cost Behavior [LO 1] The Hotel Majestic is interested in estimating xed and variable costs so that the company can make more accurate projections of costs and prot. The hotel is in a resort area that is. particularly busy from November through February. ln Iuly and August. however, the hotel has only a 50 percent occupancy rate. REQUIRED Classify each of the following costs as xed (F). variable (V), or mixed (M) with respect to the number of hotel guests per month: a. Depreciation ofthe building I). Salaries of restaurant staff c. Salaries ofadministrative sta'lhotel manager. desk clerks, accountants. etc} d. Soap, shampoo, and other toiletries in rooms e. Laundry costs (cost of linens. cleaning products. depreciation of laundry equipment, etc.) f. Food and beverage costs 3. Grounds maintenance PROBLEM 4-2. Account Analysis [LO 1, 2] Lancer Audio produces a highend DVD player that sells for $1,300. Total operating expenses for luly were as follows: Units produced and sold 150 Component costs $ 71.000 Supplies 2.500 Assembly labor 25,000 Rent 2.300 Supervisor salary 5.600 Electricity 350 Telephone 230 Gas 300 Shipping 2.000 Advertising 2.600 Administrative costs 15.000 Total $126,930 REQUIRED a. Use account analysis to determine xed cost per month and variable cost per DVD player. Assume assembly labor in a variable cost. I). Project total cost for August, assuming production and sales of 175 units. c. What is the contribution margin per DVD player? d. Estimate total prot, assuming production and sales of 175 units. e. Lancer Audio is considering an order for 120 DVD players. to be produced in the next 10 mont customer in Canada. The selling price will be $1,050 per unit ( the nor 'ce]. However. the Lancer Audio brand name will not be attache ct. Wh mpact on company prot associated with this order