As part of their application for a loan to buy Lakeside Farm, a ...

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As part of their application for a loan to buy Lakeside Farm, a property they hope to develop as a bed-and-breakfast operation, the prospective owners have projected: Monthly fixed cost (loan payment, taxes, insurance, maintenance) 6000 Variable cost per occupied room per night  20 Revenue per occupied room per night  75
 a. Write the expression for total cost per month. Assume 30 days per month.
  b. Write the expression for total revenue per month.
  c.If there are 12 guest rooms available, can they break even? What percentage of rooms would need to be occupied, on average, to break even?

Question 2

In order not to violate the requirements necessary to use the chi-square distribution, each expected frequency in a goodness of fit test must be
 a. at least 5
  b. at least 10
  c. no more than 5
  d. less than 2

[ErinKing]

Answer to Question 1

a. C(x) = 6000 + 20(30)x (monthly)
b. R(x) = 75(30)x (monthly)
c. Break-even occupancy = 3.64 or 4 occupied rooms per night, so they have enough rooms to break even. This would be a 33 occupancy rate.

Answer to Question 2

A