The Lanai Motel's costs at two different sales levels are as follows: Required: Payroll: Salaries Wages Employee benefits Supplies Utilities Other operating costs Building rent Interest expense Insurance Monthly Room Sales 2,000 3,000 $15,000 40,000 9,200 2,000 8,000 4,000 9,000 2,500 3,650 $15,000 60,000 10,700 3,000 8,000 5,000 9,000 2,500 3,650 1. Identify each cost as fixed, variable, or mixed. 2. What are the total estimated monthly fixed costs? CO 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.

The Lanai Motel's costs at two different sales levels are as follows: 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. The Lanai Motel's costs at two different sales levels are as follows: 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