Question

The owner of a small motel has an unusual idea to increase revenue.The motel has 20 rooms. He advertises that each night will cost a base rate of $48 plus $8 times the number of empty rooms that night.For example, if all rooms are occupied, he will have a total income of 20 * $48-8960 But, if three rooms are empty, then his total income will be (20-3) ($48 + $8.3) = 17 * $72 = $1224.

a) $1,280
b) $1,440
c) $960
d) $1,200

Answer 1

The total income for the motel when three rooms are empty is $1,224, as calculated by multiplying the number of occupied rooms by the increased room rate due to the empty rooms.

Step-by-step explanation:

The owner of a small motel has an unusual pricing strategy where the cost of a room increases depending on the number of empty rooms. To find the total income when three rooms are empty, we calculate as follows: (total number of rooms - empty rooms) × (base rate + incremental rate × number of empty rooms). In this case, it is (20-3) × ($48 + $8 × 3). After calculation, the total income for the motel when three rooms are empty is 17 × $72, which equals $1,224.