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Prairie Motels has a total of 3,400 rooms in its chain of motels located in eastern Canada. On average, 55%% of the rooms are occupiedeach
Prairie Motels has a total of 3,400 rooms in its chain of motels located in eastern Canada. On average, 55%% of the rooms are occupiedeach 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 fixed cost elements. During April, the occupancy rate dropped to only 40%. A total of $2,013,480 inoperating cost was incurred during April.Required:1. Estimate the variable cost per occupied room per day. (Do not round intermediate calculations and round your final answer to 2decimal places.)Variable costper room perday2. Estimate the total fixed operating costs per month.perFixed operating costmonth3. Assume that the occupancy rate increases to 55% during May. What total operating costs would you expect the company to incur inMay? (Do not round intermediate calculations.)Total expected operating cost
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