Suppose a Best Western Motel Has Annual Fixed Costs Applicable

question 43

Multiple Choice

Suppose a Best Western 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 amount of net income on rooms that will be generated if the motel is half full throughout the entire year is:

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

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Definitions:

Human Interaction

The communication and interplay between individuals or groups, encompassing both verbal and non-verbal exchanges.

Full Humans

A term emphasizing the inherent dignity and rights of every person, regardless of their status, condition, or ability.

Preparatory Stage

in developmental psychology and sociology, refers to the initial phase where children mimic or imitate the behaviors of others without understanding their meanings.

Game Stage

A concept in sociology referring to the stage in a child's development where they begin to understand and take on the roles of others in games, leading to the development of the self.