Unit $3$: Chapter $3$ Assignment $($i$)$

$2$

$16$

points

Donaldson Bed and Breakfast has six available rooms to rent to tourists visiting Niagara Falls. Guests enjoy a comfortably appointed room with an attached bathroom and the owners provide a hearty breakfast each morning. The owners have calculated that their typical occupancy rate is $80\%$ per month. The cost to rent each room is $$65$ per occupied room per day assuming a $30-$day month. Some of this cost is fixed and some variable. During the month of June, the occupancy rate went down to $60\%$ and the total cost to operate that month was $$7,650.$

Requlred:

Using the high$-$low method, estimate the variable and fixed cost elements of the bed and breakfast's operation in a typical month. Note: Do not round your Intermedlate calculatlons. Round the "Varlable cost per room" to $2$ declmal places.

$\backslash$table$[[,\backslash$table$[[$Average # room$],[$nights rented per$],[$month$]],\backslash$table$[[$Total Monthly$],[$Cost$]]],[$High level of activity,,$],[$Low level of activity,,$],[$Change$,,],[,,],[$Variable cost per room,,$],[$Fixed cost per year,,$]]$

$2$ Express the variable and fixed costs in the form $Y=a+bx.$

Note: Do not round your Intermedlate calculations. Round the "Varlable cost per room" to $2$ declmal places.

$Y=$

$3.$ If the occupancy rate went up to $90\%$ in a particular month, what total cost would you expect to be incurred that month?

Note: Do not round Intermedlate calculatlons.

Total cost for that month