Question #2 The 100-room limited service Pepper Inn has an ADR of $80 and variable...
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Question #2 The 100-room limited service Pepper Inn has an ADR of $80 and variable cost per room sold of $15. Assume there is no other sales activity. Its monthly fixed cost total $100,000.1.How many rooms must be sold to break even? 2.What day of the month does it break even if it averages a paid occupancy percentage of 60 percent? Assume all 100 rooms are available for sale each day. 3.if variable costs are reduced by $3 and fixed cost increase by $72,000 annually, what are the monthly breakeven revenues? Show your work
The 100-room limited service Pepper Inn has an ADR of $80 and variable cost per room sold of $15. Assume there is no other sales activity. Its monthly fixed cost total $100,000.
1.How many rooms must be sold to break even?
2.What day of the month does it break even if it averages a paid occupancy percentage of 60 percent? Assume all 100 rooms are available for sale each day.
3.if variable costs are reduced by $3 and fixed cost increase by $72,000 annually, what are the monthly breakeven revenues?
Show your work
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