Sunrise Motel's Cost Function Is Given As: Y = $50,000

question 72

Multiple Choice

Sunrise Motel's cost function is given as: Y = $50,000 + $7.50X
Where:
Y = annual custodial cost
X = number of guest-days of occupancy
In the current year,Sunrise Motel has 8,000 guest days.In the next year,Sunrise Motel expects an occupancy level of 10,000 guest days.(All costs next year will remain in the same relevant range as the current year.) What is the expected total custodial cost for next year?

• A)$50,000
• B)$62,500
• C)$125,000
• D)$137,500

---

Definitions:

Disaffirm

The legal act of declaring a contract or agreement void and refusing to honor it, usually due to issues like minor status or fraud.

Semi-invalid

Describes a state or condition where something or someone is partially, but not completely, invalid or unacceptable.

Sued

A legal process where one party files a lawsuit against another in a court of law.

Public Funds

Financial resources collected by the government, typically through taxation, to be used for public purposes and services.