Suppose a Hotel Has Annual Fixed Costs Applicable to Its

Multiple Choice

Suppose a hotel has annual fixed costs applicable to its rooms of $2.0 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) $1,280,000
B) $2,380,000
C) $3,180,000
D) $4,380,000