A hotel incurs two types of expenses, one which is fixed and others depend upon no. of guests.

Ques - A hotel incurs two types of expenses, one which is fixed and others depend upon no. of guests. When there are 10 guests, total expenses of hotel are Rs. 6000. Also when there are 25 guests average expenses per guests are Rs. 360? What is the total expenses of hotel when there are 40 guests?

(a) Rs. 8,000

(b) Rs. 12,000

(c) Rs. 15,500

(d) None of these

Solution - 

Let,

The fixed expends = x

and

The variable expends = y

When there are 10 guests,

x + 10y = 6000  ______ (1)

When there are 25 guests,

x + 25y = 9000  ______ (2)    (25 × 360 = 9000)

Subtracting eq.1 from eq.2

(x + 25y) - (x + 10y) = 9000 - 6000

15y = 3000

y = 200

And,

x + 10y = 6000

x + 10(200) = 6000

x + 2000 = 6000

x = 4000

When there are 40 guests,

= x + 40y

= 4000 + 40(200)

= 4000 + 8000

= 12000

Therefore,

The total expenditure when there are 40 guests is 12,000.

Hence,

The correct answer is option (b) Rs. 12,000. 

Thank You