Suppose a Holiday Inn Hotel Has Annual Fixed Costs Applicable

question 67

Multiple Choice

Suppose a Holiday Inn Hotel has annual fixed costs applicable to its rooms of $1.2 million for its 300-room hotel, average daily room rents of $50, and average variable costs of $10 for each room rented.It operates 365 days per year.The amount of net income on rooms that will be generated if the hotel is completely full throughout the entire year is _____.

• A)$1,188,000)
• B)$4,275,000
• C)$3,180,000
• D)$5,475,000

---

Definitions:

Social Frameworks

Structures that provide guidelines for behavior and interactions within social groups, including norms, roles, and institutions.

Group Decisions

The process by which two or more individuals agree upon a decision within a group setting, often requiring negotiation and compromise.

Consequential Theories

Ethical theories that determine the rightness or wrongness of actions based on their outcomes or results.

Rule-based Theories

Philosophical theories that emphasize the importance of following structured, predefined rules or guidelines to determine moral conduct or decision-making processes.