Prairie Motels has a total of 2,200 rooms in its chain of motels located in eastern Canada. On average, 40% of the rooms are occupied each day. The companys operating costs are $14 per occupied room per day at this occupancy level, assuming a 30-day month. This $14 contains both variable and fixed cost elements. During April, the occupancy rate dropped to only 30%. A total of $326,700 in operating cost was incurred during April.

. Estimate the variable cost per occupied room per day. (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Variable cost

2)Estimate the total fixed operating costs per month.

3) Assume that the occupancy rate increases to 45% during May. What total operating costs would you expect the company to incur in May?