Suppose a Holiday Inn hotel has fixed annual room costs of $1.2 million for its 300-room hotel. Average daily room rents are $50 per room and average variable costs are $10 per room rented. It works 365 days a year. 

If the hotel is fully booked throughout the year, what is the net profit for one year?

Answer rating: 100% (QA)

The hotels fixed costs for the year are 12 million and the variable cost per room ... View the full answer