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You run a hospital with 100 rooms. Fixed daily cost is $900.00 which includes staff salary, property charges, maintenance etc. Variable cost per room is $11.00 which includes cleaning, equipment rentals, utility cost etc. which is incurred only when the room is full. You charge $82.00 per room per day. You sold 40.00 rooms today, how much profit/loss did you earn for today.

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Answered by GPT-5 mini AI
Revenue = 40 × $82 = $3,280
Variable cost = 40 × $11 = $440
Total cost = fixed $900 + variable $440 = $1,340
Profit = $3,280 − $1,340 = $1,940

You earned a profit of $1,940 today.