You run a hotel with 200 rooms. Fixed daily cost is $1500 which includes staff salary and property charges, maintenance cost of hospital is additional $300 daily. Variable cost per room is $15 which includes cleaning, utility cost etc. You charge $100 per room per day. You sold 50 rooms today, how much is the total variable cost for that day.

Question 4 options:

1)

$1500

2)

$1800

3)

$750

4)

$3000