I am having trouble finding the right answer for this. i am getting two answer but don't know which one is correct. I was hoping you could help me with this.
Flexed budgets for the cost of cleaning in a hotel depend on the number of beds occupied. The following information is available for different levels of occupancy:
Proportion of beds occupied: 73% . 85%
cleaning cost: 28,241 . 28,445
in June 76%of beds were occupied.
What should the cleaning cost be for the month of June?
6y ago#1In future you must ask in the Ask the Tutor Forum if you want me to answer - this forum is for students to help each other.
Why are you attempting questions for which you do not have an answer? You should be using a Revision Kit from one of the ACCA approved publishers - they contain answers and explanations!
This question is testing the high low method - have you watched my free lectures on it? The lectures are a complete free course for Paper MA and cover everything needed to be able to pass the exam well.
The variable cost per % is (28445 - 28241) / (85 - 73) = $17
The fixed cost per month is 28241 - (73 x 17) = $27,000
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