Incremental-cost pricing

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Jacob rents rooms in his hotel for an average of $150 per night and last year rented 12,730 rooms, leading to $1,909,500 in revenue. His fixed costs are $100,000 and his variable cost was $20 per room for maid service and utilities. If he's using incremental-cost pricing, how much did he profit off of his hotel?

Reference no: EM131719433

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