In one year, the Whispering Leaves Resort incurred $100,000 in fixed costs. Because the resort booked 10,000 room nights, its total variable cost is $100,000 (10,000 room nights × $10 per room). Thus, its total cost is
A)$10,000.
B)$200,000.
C)$20,000.
D)$100,000.
E)$120,000.

Question

Quizplus · Accepted Answer

Total Cost = Fixed Cost + Variable Cost
Variable cost = Number of room nights * Cost per room night
Variable cost = 10,000 * $10 = $100,000
Total cost = $100,000 + $100,000 = $200,000

In One Year, the Whispering Leaves Resort Incurred $100,000 in Fixed