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:

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:

Quizplus · Accepted Answer

To find the total fixed cost at the activity level of 10,600 guest-days per month, we need to look at the fixed costs column in the budget. We can see that at 10,000 guest-days, the fixed cost is $116,160. Assuming that the fixed cost remains constant within the relevant range (as is generally the assumption in static budgets), we can use this number as our answer. Therefore, the total fixed cost at the activity level of 10,600 guest-days per month should be $116,160.

Bard Hotel Bases Its Budgets on Guest-Days