Question
You are in charge of the Kents Inn Hotel and want to know the breakdown of the repair and maintenance between variable and fixed categories.
You are in charge of the Kents Inn Hotel and want to know the breakdown of the repair and maintenance between variable and fixed categories. Fixed expenses are the minimum amount required to maintain your hotel at low occupancy, while additional maintenance requires with a higher occupancy percentage. You have the following data:
Based on the current reservation and monthly forecast, you will be selling 2500 rooms in the coming month (August). Please project your coming month's total repair and maintenances expenses if 2500 are sold. (You will be using the two-point method) Please submit a word doc for question and show your work.
Month Total expenses Rooms Sold Jan $ $ 6,100 1820 Feb $ 7,500 2250 Mar $ 7,900 2790 Apr $ 6,000 1900 May $ 8,600 2800 Jun $ 5,400 1057 July $ 5,900 1330 Total $ 47,400 13947Step by Step Solution
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