Question

The Hotel Majestic is interested in estimating fixed and variable costs so that the company can make more accurate projections of costs and profit. The hotel is in a resort area that is particularly busy from November through February. In July and August, however, the hotel has only a 50 percent occupancy rate. Classify each of the following costs as fixed, variable, or mixed with respect to the number of hotel guests per month:

a. Depreciation of the building select a cost classification
b. Salaries of restaurant staff select a cost classification
c. Salaries of administrative staff (hotel manager, desk clerks, accountants, etc.) select a cost classification
d. Soap, shampoo, and other toiletries in rooms select a cost classification
e. Laundry costs (cost of linens, cleaning products, depreciation of laundry equipment, etc.) select a cost classification
f. Food and beverage costs select a cost classification
g. Grounds maintenance

Answer 1

Answer:

Follows are the solution to this question:

Explanation:

In point a, Building deflation-F-because it does not shift  with the number of property guests.  

In point b, Restaurant employee wages -M-since some proportion of salaries are set while some remainder is variable  

In point c, Administrative staff wages (hotel owners, lobby staff, auditors, and so on). -F-and this doesn't shift only with the number of property guests increasing.  

In point d, Soap, shampoo, or certain toiletries in rooms'- V -  since the amount of guest visitors changes throughout the transition.  

In point e, Price of washing (the price of sheets, cleaning products,valuation of washbasins, etc.) -M- Some of its cost is fixed in existence, like valuation, while some of its costs change in the natural world.  

In point f, Foodservice expenditures-V-because the number of property visitors change with both the transition.  

In point g, Management of facilities-F-because it does not change with both the change in the number of visitors.