Chadwick Ski Lodge Chadwick Ski Lodge decides how many housekeepers it needs to hire based on expected hotel occupancy. The following shows the budgeted housekeeping costs per month at various occupancies: Number of occupied rooms Housekeeping costs 0 - 25 $11,500 26 - 40 23,000 41 - 55 34,500 Refer to the information provided for Chadwick Ski Lodge. The number of occupied rooms during the month

of January is expected to be between 41 and 55 at all times. For the month of January, what type of cost does housekeeping effectively become?
A) Fixed
B) Variable
C) Step
D) Mixed


A

Business

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