Question

Using the information given below, provide the answers of the following question. High Point: Activity 8,000 customers Total (Mixed) Costs: $65,000 Low Point: Activity 6,000 customers Total (Mixed) Costs: $56,000 QDetermine Fixed Cost amount when 10,000 customers are served. (Do not put "$" or "" in your answer. If you answer is $1,000.00; then, just put 1000)

Answer 1

(a)	Mixed Cost	65000	Activity	8000	Customers
	Mixed Cost	56000	Activity	6000	Customers
	Varible cost Per unit = Mixed cost at highest activity level - Mixed Cost at lowest activity laevel / No. of Customer at highest activity level - No. of customer at lowest activity level
	Varible cost Per unit =	4.5
	Total varible cost =	36000
	Fixed Cost =	29000
	Fixed Cost amount when 10000 customers are served is 29000.
(b)	Mixed Cost	65000	Activity	8000	Customers
	Mixed Cost	56000	Activity	6000	Customers
	Varible cost Per unit = Change in Mixed Cost / Change in Activities
	Varible cost Per unit =	4.5
	Varible Cost amount when 12000 customers are served is -
		54000
(c.)	Fixed Cost Monthly =	50000
	Varible Cost Per Room =	30
	No. of Room sold in July =	1000
	Average Selling Price Per Room =	100
	Tax rate =	35%
	Sale	100000
	Less: varible Cost	30000
	Contribution	70000
	Less: Fixed Cost	50000
	Profit before tax	20000
	Less: Tax @ 35%	7000
	Net Profit After tax	13000
(d)	Fixed Cost per annum	425000
	Manger Salary ( Fixed Cost)	65000
	Total Fixed cost (a)	490000
	Profit (b)	Nil
	Contribution(c.)= (a + b)	490000	(70% of revenue)
	sale	700000	.=(490000/70%)
(e)	65% of total Revenue from Room Department
	35% of total Revenue from Banquet Department
	Total Revenue of next Year	1800000
	Revenue from Banquet Department	630000