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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?
In 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