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Question

The average expenditure of the hotel when there are 10 guests is Rs60 per guest and the average expenditure is Rs 40 when there are 20 guests. If it is known that there are some fixed expenses irrespective of the number of guests then the average expenditure per guest when there are 40 guests in the hotel ?

A
Rs. 30
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B
Rs. 25
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C
Rs. 20
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D
Rs. 24
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E
None of these
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Solution

The correct option is A Rs. 30
let the fixed expenditure of the hotel be Rs. x and the variable expenditure (which is dependent on guest) is Rs. y, then
x+10y=600..........(i)
x+20y=800..........(ii)
10y=200
y=Rs.20 andx=400
Hence the total expenditure when there are 40 guests = 400+40×20=1200
Average expenditure =1200/40=Rs.30

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