12 . Costs arising from the possession of facilities , equipment and a basic organizational structure are ________.
a . capacity costs b . engineered costs c . committed fixed costs d . discretionary costs
13 . Sunrise Motel ' s cost function is given as :
Y = $ 75,000 + $ 9.50X
Where :
Y = annual custodial cost
X = number of guest−days of occupancy
In the current year , Sunrise Motel has 8,000 guest days . In the next year , Sunrise Motel expects an occupancy level of 10,000 guest days . ( All costs next year will remain in the same relevant range as the
current year .) What is the expected fixed custodial cost for next year ?