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Prairie Motels has a total of 2,300 rooms in its chain of motels located in eastern Canada. On average, 45% of the rooms are occupied
Prairie Motels has a total of 2,300 rooms in its chain of motels located in eastern Canada. On average, 45% of the rooms are occupied each day. The company's operating costs are $39 per occupied room per day at this occupancy level. assuming a 30-day month. This $39 contains both variable and xed cost elements. During April, the occupancy rate dropped to only 30%. A total of $1,0?4,330 in operating cost was incurred during ApriL Required: 1. Estimate the variable cost per occup'ed room per day; (Do not round intermediate calculations and round your final answer to 2 decimal places.) per room per day 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? {Do not round intermediate calculations.)
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