Merkey Motel's Cost Function Based on Guest-Days of Occupancy for Custodial

Multiple Choice

Merkey Motel's cost function based on guest-days of occupancy for custodial cost is given as: Y = $50,000 + $7.50X.Merkey Motel expects an occupancy level of 10,000 guest days.Merkey Motel's expected total fixed cost is _____.

A) $7.50
B) $50,000
C) $75,000
D) $105,000