Mandalay Hotel bases its budgets on guest-days. The hotel's static budget for August appears below:   Budgeted number of guest-days 4,300Budgeted variable costs:  Supplies (@$9.60 per guest-day)$41,280Laundry (@$9.40 per guest-day) 40,420Total variable cost 81,700Budgeted fixed costs:  Wages and salaries 57,190Occupancy costs 52,030Total fixed cost 109,220Total cost$190,920?The total variable cost at the activity level of 5,000 guest-days per month should be: 

A. $81,700
B. $95,000
C. $109,220
D. $127,000


Answer: B

Business

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