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section c

This topic has 1 reply, 2 voices, and was last updated 1 year ago by John Moffat.

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June 25, 2021 at 7:05 am #626259
xyzc
Participant
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the alka hotel (Mar/jun 18)
For part b) of this question, I calculated the budgeted revenue to be 1149750, variable cost to be 383250, contribution to be 766500, fixed costs to be 600000 and profit to be 166500. I don’t understand where I have went wrong
June 25, 2021 at 7:29 am #626265
John Moffat
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I have no idea how you arrived at those figures, so I cannot tell you where you went wrong.
The only information needed is in the first paragraph of the question. The contribution is 180 – 60 = $120 per occupied night, and they are budgeting on 900 occupied nights.
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