Insomniac Hotel's cost function based on guest-days of occupancy for custodial cost is given as: Y = $60,000 + $10.00X.Insomniac Hotel expects an occupancy level of 15,000 guest days.Insomniac Hotel's expected total cost is _____.
A)$10.00
B)$60,000
C)$120,000
D)$210,000

Question

Quizplus · Accepted Answer

The expected total cost is calculated by substituting the expected occupancy level into the cost function: Y = $60,000 + $10.00(15,000) = $60,000 + $150,000 = $210,000.

Insomniac Hotel's Cost Function Based on Guest-Days of Occupancy for Custodial