Jason

Bilodeau

is the managing partner of a business that has just finished building a 60-room motel.

Bilodeau

anticipates that he will rent these rooms for

20,000

nights next year (or

20,000

room-nights). All rooms are similar and will rent for the same price.

Bilodeau

estimates the following operating costs for next year:

\begin{tabular}{|lr|} \hline Variable operating costs & $3perroom-night \\ Fixed costs & $165,000 \\ Salaries and wages & 45,000 \\ Maintenance of building and pool & 130,000 \\ Other operating and administration costs & $340,000 \\ \hline Total fixed costs & $ \\ \hline \end{tabular}