### What is the contribution margin per occupied room

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##### Reference no: EM13299428

Information on occupancy and costs at the New Light Hotel for April, May and June are indicated below:

-------------------------------------April------------May-----------June
Occupancy-----------------------1,500------------1,650----------1,800
Day Manager salary-------------\$4,200----------\$4,200----------\$4,200
Night Manager salary-----------3,700-------------3,700-----------3,700
Cleaning staff------------------15,300------------15,600---------15,900
Depreciation-------------------12,000------------12,000----------12,000
Complimentary continental breakfast:
food and beverages ---------4,600--------------5,300-----------5,800
Total:---------------------------\$39,800----------\$40,800---------\$41,600

Required
A. Calculate the fixed costs per month and the variable cost per occupied room using account analysis for April.
B. Calculate the fixed costs per month and the variable cost per occupied room using the high-low method.
C. Average room rates are \$110 per night. What is the contribution margin per occupied room? In answering this question, use your variable cost estimate from Part B.

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