Sheboygan Motel's Cost Function Is Given As

question 113

Multiple Choice

Sheboygan Motel's cost function is given as:
Y = $120,000 + $2.50X
Where:
Y = annual custodial cost
X = number of guest-days of occupancy
In the current year,Sheboygan Motel has 8,000 guest days.In the next year,Sheboygan 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) $37,000
• B) $120,000
• C) $125,000
• D) $145,000

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Definitions:

Single Characteristic

A specific attribute or quality that can define or distinguish an individual, object, or concept.

Selective Perception

The tendency to perceive and interpret information in a way that is consistent with one's existing beliefs, experiences, and expectations.

Attribution Bias

A cognitive bias that refers to the systematic errors made when people evaluate or try to find reasons for their own and others' behaviors.

Perceptual Biases

Cognitive biases that affect the interpretation and judgment of sensory information, leading to skewed perceptions and potentially erroneous conclusions.