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Alka hotel (June 2018)

VDVidhi Dhakan5y ago
Hi sir, I have doubt in part b) when they find (600,000/12)*3 from where they get 3?? Can you please explain me how they get 3 . Thanks in advance.
John MoffatJohn MoffatTutor5y ago#1
The fixed costs are $600,000 a year. Part (b) asks for the budgeted profit for Q1, which is defined in the question as being the first quarter of the year. Given that there are 12 months in a year, there are therefore 3 months in a quarter of a year.
VDVidhi Dhakan5y ago#2
Thank you sir I understand your explanation . Thank you so much sir.
John MoffatJohn MoffatTutor5y ago#3
You are welcome :-)
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