Please answer this question as possible Prairie Motels...
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Prairie Motels has a total of 1,700 rooms in its chain of motels located in eastern Canada. On average, 65% of the rooms are occupied each day. The company's operating costs are $38 per occupied room per day at this occupancy level, assuming a 30 -day month. This $38 contains both variable and fixed cost elements. During April, the occupancy rate dropped to only 50%. A total of $1,156,425 in operating cost was incurred during April. Required: 1. Estimate the variable cost per occupied room per day. (Do not round intermediate calculations and round your final answer to 2 decimal places.) 2. Estimate the total fixed operating costs per month. 3. Assume that the occupancy rate increases to 65% during May. What total operating costs would you expect the company to incur in May? (Do not round intermediate calculations.)
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