Suppose a Holiday Inn Hotel Has Annual Fixed Costs Applicable

question 10

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 half full throughout the entire year is _____.

• A)$1,192,500)
• B)$1,590,000
• C)$2,737,500
• D)$990,000

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Definitions:

Unconditioned Stimulus

A stimulus that naturally and automatically triggers a response without the need for prior learning.

Conditioned Stimulus

An initially neutral signal that, once associated with an unconditioned stimulus, triggers a learned response.

Conditioned Response

is a learned reaction to a conditioned stimulus that occurs because of previous conditioning, typically in the context of classical conditioning.

Unconditioned Stimulus

A stimulus that naturally and automatically triggers a reflexive response without the need for prior learning.