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Question - Maharlika inn is being used as Philippine Covid 19 quarantine facility, it contains 400 beds, the average OFW occupancy rate is 80%. In other words, on average 80% of the hotel's beds are occupied by OFWs. At this level of occupancy, the hospital's operating costs are 320 per occupied bed per day, assuming a 30-day month. This 320 php contains both variable and fixed cost components. During the month of October , Maharlika inn's occupancy rate was only 50% . a total of 2.2 million in operating cost was incurred during that month.
1. Using high-low method, the amount of variable cost per occupied bed per day is?
2. Using high-low method compute for the total operating fixed cost per month?
3. Using high-low method assuming the occupancy rate of 60% in a particular month, what would be the total operating costs?
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