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7. Suppose a hotel has annual fixed costs applicable to its rooms of $1.5 million for its 250-room hotel. Average daily room rents are $60 per room and average variable costs are $20 for each room rented. It operates 365 days per year. If the hotel is on average 80% full throughout the year, what is net income for one year? A) $73,000 B) $1,420,000 C) $1,500,000 D) $2,920,000