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

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Definitions:

Extinction

In the context of psychology, the gradual weakening of a conditioned response when the conditioned stimulus is repeatedly presented without the unconditioned stimulus.

Phobias

Phobias are intense, irrational fears of certain objects, activities, or situations that lead to avoidance behaviors and significant distress.

Learning

A process that leads to a change in behavior or knowledge that results from experience.

Intense Pleasure

A high degree of satisfaction or enjoyment, often derived from activities that stimulate the brain's reward centers.