1 . Palm , Inc . has a total of 2 000 rooms in its nationwide chain of hotels . On the average , 70 percent of the rooms are occupied each day . The company's operating cost is P 2 1 per occupied room per day at this occupancy level , assuming a 30 - day month . This P21 figure contains both variable and fixed cost elements . During October , the occupancy dropped to only 45 percent . A total of P792 000 in operating costs were incurred during the month . What would be the expected operating costs assuming that the occupancy rate increases to 60 percent during November ? a . P1 056000 b . P 846000 P 756000 d . P 829 500 e . None of the Choices