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 one-half full throughout the entire year,what is the amount of net income for one year?

A) $(1,192,500)
B) $990,000
C) $1,590,000
D) $2,737,500