Question

You run a hotel with 200 rooms. Fixed daily cost is $1500 which includes staff salary and property charges, maintenance cost 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 revenue did you earn.

Answer 1

The revenue we earned for 1 day by renting the rooms equals $2450.

Step-by-step explanation:

Since we rent 50 rooms at the rate of $100 per room thus the overall revenue that we earn equals

`R=50* 100=$5000`

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
`E=1500+300+750=2250`

Thus the net revenue is the difference in total revenue and the total expenditure

Thus Net Revenue =$5000-$2550=$2450

Answer 2

The revenue is $2,450

Step-by-step 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