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The moonlight hotel has 200 rooms each room rents at 110

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The Moonlight Hotel has 200 rooms. Each room rents at $110 per night and variable costs total $16 per room per night of occupancy. Fixed costs total $84,000 per month.If the hotel spends an additional $10,000 in the month of February on advertising they feel that they can expect occupancy rate to increase by 5%  What would be the financial impact of spending this additional money on advertising for the month of February (28 days)?

Reference no: EM13607975

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