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Hello Mr Moffat,
For this question’s hotel part, I am confused that why the maintenance cost is ($14,600 – $4,000) = $10,600. Because in the question it mentioned if it continue to open the cost is $14,600, if close then $4,000. Why wasn’t it $14,600 + $4,000?
Thank you
They are not paying both. They either close and pay $4,000 or they stay open and pay $14,600.
So staying open is costing an extra $10,600.
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