Suppose a Holiday Inn Hotel Has Annual Fixed Costs Applicable

Multiple Choice

Suppose a Holiday Inn Hotel has annual fixed costs applicable to its rooms of $1.2 million for its 300-room hotel.Average daily room rents are $50 per room and average variable costs are $10 for each room rented.It operates 365 days per year.If the hotel is completely full throughout the year,what is net income for one year?

A) $(1,188,000)
B) $3,180,000
C) $4,275,000
D) $5,475,000