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    Exam 3: Measurement of Cost Behavior
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    Bush Motel's Cost Function Based on Guest-Days of Occupancy for Custodial
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Bush Motel's Cost Function Based on Guest-Days of Occupancy for Custodial

Question 3

Question 3

Multiple Choice

Bush Motel's cost function based on guest-days of occupancy for custodial cost is given as: Y = $60,000 + $4.50X.Bush Motel expects an occupancy level of 8,000 guest days.Bush Motel's expected total variable cost is:


A) $5.50
B) $36,000
C) $60,000
D) $115,000

Correct Answer:

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