Yewston Hotel bases its budgets on guest-days. The hotel's static budget for April appears below:
-The total variable cost at the activity level of 3,200 guest-days per month should be:
A)$40,960
B)$49,280
C)$29,440
D)$35,420

Question

Yewston Hotel bases its budgets on guest-days. The hotel's static budget for April appears below:
-The total variable cost at the activity level of 3,200 guest-days per month should be:
A)$40,960 
B)$49,280 
C)$29,440 
D)$35,420

Quizplus · Accepted Answer

The total variable cost is calculated by multiplying the variable cost per guest-day by the number of guest-days. If the variable cost per guest-day is $12.80, then $12.80 * 3,200 = $40,960.

Yewston Hotel Bases Its Budgets on Guest-Days