Roach Motel's Cost Function Based on Guest- Days of Occupancy

question 155

Multiple Choice

Roach Motel's cost function based on guest- days of occupancy for custodial cost is given as: Y = $60,000 + $5.50X. Roach Motel expects an occupancy level of 10,000 guest days. Roach Motel's expected total variable cost is:

• A) $115,000
• B) $60,000
• C) $55,000
• D) $5.50

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Definitions:

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A barrier made from wire, used to enclose or divide an area, typically for security or to keep livestock within a boundary.

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A swimming pool whose water has been intentionally removed, often for maintenance or safety reasons.

Chocolate Bar

A confectionary item made primarily from chocolate and shaped into a rectangular form for consumption.