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Bates Motel's Cost Function Based on Guest- Days of Occupancy

Question 93

Multiple Choice

Bates Motel's cost function based on guest- days of occupancy for custodial cost is given as: Y = $30,000 + $7.50X. Bates Motel expects an occupancy level of 10,000 guest days. Bates Motel's expected total fixed cost is:


A) $30,000
B) $7.50
C) $75,000
D) $105,000

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