Bush Motel's Cost Function Based on Guest-Days of Occupancy for Custodial

question 3

Multiple Choice

Bush Motel's cost function based on guest-days of occupancy for custodial cost is given as: Y = $60,000 + $4.50X.Bush Motel expects an occupancy level of 8,000 guest days.Bush Motel's expected total variable cost is:

• A)$5.50
• B)$36,000
• C)$60,000
• D)$115,000

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Definitions:

Net Cash

The amount of cash available after all cash inflows and outflows have been accounted for.

Financing Activities

Transactions and business events that involve raising capital and repaying investors, including issuing equity and debt, dividend payments, and loan repayments.

Net Cash

The amount of cash that remains after deducting cash outflows from cash inflows, reflecting a company's cash liquidity.

Statement Of Cash Flows

The statement of cash flows is a financial report that shows how changes in balance sheet accounts and income affect cash and cash equivalents, categorizing cash flows into operating, investing, and financing activities.