Problem 8 The Boyton Motel's costs at two different sales levels are as follows: Monthly Room Sales 2,000 3,000 Payroll: Salaries $15,000 $15,000 40,000 Wages 60,000 Employee benefits 9,200 10,700 2,000 3,000 Supplies 8,000 Utilities 8,000 Other operating costs 4,000 5,000 Building rent 8,000 8,000 2,000 2,000 Interest expense Insurance 3,000 3,000 Required: 1. Identify each cost as fixed, variable, or mixed. 2. What are the total estimated monthly fixed costs? 3. What are the total estimated variable costs per room sold? 4. Develop a single equation to estimate total costs at various levels of activity. 5. Project the total costs if 3,500 rooms are sold.