Elegant Motel's cost function is given as:

Y = $80,000 + $10.25X

Where:

Y = annual custodial cost

X = number of guest-days of occupancy

In the current year, Elegant Motel has 10,000 guests days. In the next year, Elegant Motel expects an occupancy level of 12,000 guest days. All costs next year will remain in the same relevant range as the current year. What is the expected fixed custodial cost for next year?

	A.	$80,000
	B.	$10.25
	C.	$102,500
	D.	$123,000