Bard Hotel bases its budgets on guest-days. The hotel's static budget for January appears below: The total fixed cost at the activity level of 10,600 guest-days per month should be:
A)$210,240
B)$232,140
C)$116,160
D)$128,260

Question

Bard Hotel bases its budgets on guest-days. The hotel's static budget for January appears below:  The total fixed cost at the activity level of 10,600 guest-days per month should be:
A)$210,240 
B)$232,140 
C)$116,160 
D)$128,260

Quizplus · Accepted Answer

The fixed cost in the static budget is $116,160 at an activity level of 10,600 guest-days per month. Therefore, the fixed cost at an activity level of 10,600 guest-days per month should be $116,160.

Bard Hotel Bases Its Budgets on Guest-Days