Knowing that Regency Hotels estimates the total costs of providing room service meals at $15,000 per month, plus 75 percent of room service revenue, please answer the following MCQ questions
A small hint : calculate contribution margin first
Contribution margin 25%
The total cost of providing room service in a month in which room service revenue amounts to $90,000 is $22,500
The contribution margin ratio of providing room service meals
amounts to $15,000 X 75%
Select one:
True
False