Explain How the Listed Events (A-D)would Affect the Following at Hilton

question 262

Essay

Explain how the listed events (a-d)would affect the following at Hilton Hotels.
i.Marginal cost
ii.Average variable cost
iii.Average fixed cost
iv.Average total cost
a.Hilton decides on an across-the-board 5 percent increase in executive salaries.
b.Hilton decides to eliminate all print advertising.
c.Hilton signs a new contract with the Culinary Workers Union that requires the company to increase wages for all its kitchen workers.
d.The federal government starts to levy a $5 room tax on all hotel rooms.

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Definitions:

Accrue Salary Expense

The process of recognizing salaries incurred by employees during a period but not yet paid by the company.

Salaries Payment

The process of distributing money to employees as compensation for their work.

Prepaid Subscriptions

Payments made in advance for subscription-based services, recognized as an asset until the service period has been fulfilled.

Calendar-Year

A one-year period that begins on January 1 and ends on December 31, used as the financial year by many countries and organizations.