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23 S03020 Great Eastern Inns has a total of 1,600 rooms in its chain of motets located in eastern Canada. On average, 60% of
23 S03020 Great Eastern Inns has a total of 1,600 rooms in its chain of motets located in eastern Canada. On average, 60% of the rooms are occupied each day. The company's operating costs are $10 per occupied room per day at this occupancy level, assuming a 30-day month. This $16 figure contains both variable and fixed cost elements. During February, the occupancy rate dropped to only 40% A total of $379,200 in operating cost was incurred during February Required: 1.Estimate the variable cost per occupied room per day (Assume 30 days in a month. Do not round intermediate calculations and round your final answer to 2 decimal places.) Vanello-cond room per day 2. Estimate the total fixed operating costs per month Foot opening e per month 3. Assume that the occupancy rate increases to 55% during March. What total operating costs would you expect the company to incur during March? (Assume 30 days in a month. Do not round intermediate calculations.)
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