Answer:
The revenue is $2,450
Explanation:
The computation of the revenue is shown below:
= Sales - variable cost - additional costs - fixed cost
where,
Sales = Selling units × price per unit
= 50 rooms × $100
= $5,000
Variable cost = variable cost × price per unit
= 50 rooms × $15
= $750
The other cost value would remain the same
Now put these values to the above formula
So, the value would equal to
= $5,000 - $750 - $300 - $1,500
= $2,450
Answer:
The revenue we earned for 1 day by renting the rooms equals $2450.
Explanation:
Since we rent 50 rooms at the rate of $100 per room thus the overall revenue that we earn equals
[tex]R=50\times 100=$5000[/tex]
Now the expenditures include:
1) Fixed daily cost = $1500
2) Maintenance cost = $300
3) Variable cost = $15 thus cost for 50 rooms equals = 15x50= $750
Thus the total expenditure on the hotel is the sum of all the above charges
thus [tex]E=1500+300+750=2250[/tex]
Thus the net revenue is the difference in total revenue and the total expenditure
Thus Net Revenue =$5000-$2550=$2450
