Question
The Jedi Hotel has been tracking its property repairs and maintenance costs (PR&M) over the past year. The results were as follows for the year:
The Jedi Hotel has been tracking its property repairs and maintenance costs (PR&M) over the past year. The results were as follows for the year:
The Jedi Hotel Month Activity (Room Nights Sold) PR&M Costs
January 2050 $3,225
February 2800 $3,754
March 3200 $3,947
April 3800 $4,091
May 4100 $4,572
June 4350 $5,583
July 4700 $5,824
August 4900 $6,257
September 4500 $5,727
October 3300 $3,995
November 2700 $3,706
December 2400 $3,465
Required: Using the high-low two point method:
1. Calculate the variable cost per room night sold.
2. Calculate the monthly fixed PR&M cost.
3. Estimate the total amount that the Jedi Hotel will spend on PR&M cost when the forecasted activity level for the month is: 4813 room nights.
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Financial Accounting
Authors: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
12th edition
134725980, 9780134726656 , 978-0134725987
