homework 3

homework 3 - Coefficients Intercept 34036.24033 Rooms Sold...

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Unformatted text preview: Coefficients Intercept 34036.24033 Rooms Sold 8.808205022 Coefficients Intercept 47967.12459 Rooms Sold 7.823384497 Coefficients Intercept 94003.36492 Rooms Sold 16.63158952 Problem 1 1) Rooms expense = 34,036.24 + 8.81(# of Rooms) Undistributed operating expense = 47,967.12 + 7.82(# of Rooms) Rooms and UO expenses are both mixed. 2) Costs above are both mixed. By intuition, I thought that rooms expense would be more proportionately variable. Because undistributed expenses contains fixed costs, like salaries, and variable costs, like marketing, I am not surprised that the regression reveals that it is mixed. 3) Total operating costs = 94,003.36 + 16.63(# of Rooms) 4) , . (- . ) 94 003 36 83 16 63 = 1,417 (rounded up to nearest whole number) , , 1 4174 092 = 34.63% $30,000 $80,000 $130,000 $180,000 $230,000 $280,000 $330,000 $380,000 500 1000 1500 2000 2500 3000 3500 4000 CVP Total Cost Revenue-$100,000-$50,000 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 500...
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This note was uploaded on 04/28/2010 for the course HADM 2236 taught by Professor Spies during the Spring '09 term at Cornell.

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homework 3 - Coefficients Intercept 34036.24033 Rooms Sold...

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