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Great Eastern Inns has a total of 1,900 rooms in its chain of motels located in eastern Canada. On average, 50% of the rooms
Great Eastern Inns has a total of 1,900 rooms in its chain of motels located in eastern Canada. On average, 50% of the rooms are occupied each day. The company's operating costs are $21 per occupied room per day at this occupancy level, assuming a 30-day month. This $21 figure contains both variable and fixed cost elements. During February, the occupancy rate dropped to only 30% A total of $445,740 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.) Variable cost per room per day 2. Estimate the total fixed operating costs per month. Fixed operating cost per month
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