A hotel pays the phone company 200per month plus 15 for


Question: A hotel pays the phone company $200per month plus $.15 for each call made. During January 7,000 callswere made. In February 8,000 calls were made.

a) Calculate the hotel's phone bills for January and February.

b) Calculate the cost per phone call in January and in February.

c) Separate the January phone bill into its fixed and variablecomponents.

d) What is the marginal cost of one additional phone call inJanuary?

e) What was the average cost of a phone call in January?

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Accounting Basics: A hotel pays the phone company 200per month plus 15 for
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