Great Eastern Inns has a total of 2,200 rooms in its chain of motels located in eastern Canada. On average, 40% of the rooms are occupied each day. The company’s operating costs are $14 per occupied room per day at this occupancy level, assuming a 30-day month. This $14 figure contains both variable and fixed cost elements. During February, the occupancy rate dropped to only 30%. A total of $326,700 in operating cost was incurred during February.
Estimate the variable cost per occupied room per day.