In one year, the Hotel by the Shore incurred $100,000 in fixed costs. Because the hotel booked 10,000 room nights, its total variable cost is $100,000 (10,000 room nights × $10 per room). Thus, its total cost is
A. $120,000.
B. $100,000.
C. $20,000.
D. $200,000.
E. $10,000.
Answer: D
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