Question
The Lakeshore Hotel's guest-days of occupancy and custodial supplies expense over the last seven monthswere: Guest-Days of Custodial Supplies Month Occupancy ............Expense March ................... 4,000...................
The Lakeshore Hotel's guest-days of occupancy and custodial supplies expense over the last seven monthswere:
Guest-Days of Custodial Supplies
Month Occupancy ............Expense
March ................... 4,000................... $7,500
April ..................... 6,500 ...................$8,250
May ...................... 8,000 ...................$10,500
June ..................... 10,500 ...................$12,000
July ...................... 12,000 ...................$13,500
August ................. 9,000 ...................$10,750
September ........... 7,500 ...................$9,750
Guest-days is a measure of the overall activity at the hotel. For example, a guest who stays at the hotel for three days is counted as three guest-days.
Required:
Using the cost formula, what amount of custodial supplies expense would you expect to be incurred at an occupancy level of 11,000 guest-days?
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