Question

Lakeview Resorts is a new concept of Hotel chim resorts. This resort has a tariff for Corporates which is very unique. It has two components ane is a fired cost
and other is a variable cost which varies linearly with number of boarders. The total tariff is $2400 when there are 60 people and $3000 when these are 75
people. What is the total tariff when there are 95 boarders?
a)$3200
b)$4000
c)$3600
d)$3800​

Answer 1

Under the GST Regime

GST Rates for Hotels based on Room Tariff (Up to 30.09.2019)

Tariff per Night GST Rate

INR 1,000 -2,499.99 12%

INR 2,500 -7,499.99 18%

= or > INR 7,500 28%

Answer 2

We are required to calculate the total tariff when there are ninety-five boarders staying at Lakeview Resort. We are given four options to choose the correct answer and the correct answer is d. $$3800$.

Let the fixed cost be $x$ and the variable cost be $y$.

The cost of $60$ guests is $x + 60 y = 2400$

The cost for $75$ guests is $x + 75y = 3000$

Equating by substitution of the equation $1$ in $2$

$x + 60 y = 2400$

$x = 2400 - 60y$

Substituting in equation $2$

$x + 75y = 3000\\(2400 - 60y) + 75y = 3000\\2400 + 15y = 3000\\15y = 3000 - 2400\\y = \frac{600}{15}$

$=$Rs. $40$

Substituting y in the equation $2$

$x + 75y = 3000\\x + (75 X 40) = 3000\\x = 3000 - 3000 = 0$

Calculation of $95$ boarders

$0 + 95 X 40\\= 3800$

Therefore, the correct answer is d. $$3800$.

PROJECT CODE: #SPJ2