Total variable costs for specific month


Breezes Curacao has 200 rooms. Each room rents at $130 per night and variable costs total $42 per room per night of occupancy. Fixed costs total $18,700 per month. If 70% of the rooms are occupied each of the 30 nights in June, how much will total variable costs be for June?

a) $369,600

b) $252,000

c) $546,000

d) $176,400

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Finance Basics: Total variable costs for specific month
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