Suppose a Comfort Inn Motel Has Annual Fixed Costs Applicable

question 109

Multiple Choice

Suppose a Comfort Inn motel has annual fixed costs applicable to its rooms of $1.2 million for its 300- room motel, average daily room rents of $50, and average variable costs of $10 for each room rented. It operates 365 days per year. The break- even point in number of rooms rented is:

• A) 30,000 rooms
• B) 120,000 rooms
• C) 24,000 rooms
• D) None of these answers is correct.

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Definitions:

Encoding Failure

A situation in which information does not enter the brain's long-term memory and thus is forgotten.

Long-Term Memory

The phase of memory in which information is stored for extended periods of time, potentially lifelong, beyond the capacity of short-term or working memory.

Motivated Forgetting

Forgetting that occurs when something is so painful or anxiety-laden that remembering it is intolerable.

Traumatic Memories

Memories of traumatic events that are so emotionally overwhelming they are often fragmented and may lead to problems like post-traumatic stress disorder (PTSD).