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A hotel finds that if it spends no money on renovations they will be able to rent 135 rooms per night. However they have found that for every $4000 spent on renovations they will be able to rent an additional 30 rooms per night. Let x represent the amount of money spent on renovations and y represent the number of rooms rented. Determine a model for the number of rooms rented as a function of the amount of money spent on renovations.
Materials Variance
The difference between the actual cost of materials used in production and the expected (standard) cost of those materials.
Price Variances
The difference between the actual cost of a good or service and its standard or expected cost, which can be favorable or unfavorable.
Quantity Variances
Differences between the actual quantity of materials or inputs used in a production process and the standard quantity expected to be used, often leading to cost variances.
Favorable Variance
A financial situation where actual costs are less than the standard or budgeted costs, or actual revenue is higher than expected.
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