The Sunrise Hotel has 200 rooms. Each room rents at $110 per night and variable costs total $27 per room per night of occupancy. Fixed costs total $76,000 per month.

7.	If the hotel spends an additional $20,000 in the month of February on advertising they feel that they can expect occupancy rate to increase by 10%. What would be the financial impact of spending this additional money on advertising for the month of February (28 days)?
	A)	Total fixed costs will increase by $10,500.
	B)	Net income will increase by $26,480.
	C)	Net income will increase by $16,320.
	D)	Total fixed costs will remain the same.