Suppose a Holiday Inn Hotel Has Annual Fixed Costs Applicable

question 169

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

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Definitions:

Somatogenic Approach

A theoretical approach in psychology and psychiatry that emphasizes the physical causes of mental disorders, focusing on genetic, neurological, or biochemical contributors.

Psychogenic Approach

Psychological factors as the primary cause behind physical symptoms or diseases.

Hypnotism

A procedure that places people in a trancelike mental state during which they become extremely suggestible.

Friedrich Anton Mesmer

An 18th-century German physician who proposed the theory of animal magnetism and is considered a precursor to the field of hypnosis.