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Question belton park
Dear tutor, Why I deduct maintenance cost if the management still pays when the park and the hotel are closed? This is the part which I get stuck and I can not understand.
The answer is showing the extra / incremental revenues and costs of keeping them open as against closing them.
If they keep the hotel open they will have to pay maintenance of $14,600 instead of $4,000, so an extra $10,600.
If they keep the water park open then they will have to pay maintenance of $6,000 instead of only $2000, so an extra $4,000.
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