#2

Problem 2 The 100-room limited-service Pepper Inn has an ADR of $80 and variable costs per room sold of $15. Assume there is no other sales activity. Its monthly fixed costs total $100,000. Required: 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 costs increase by $72,000 annually, what are the monthly breakeven revenues? Problem 2 The 100-room limited-service Pepper Inn has an ADR of $80 and variable costs per room sold of $15. Assume there is no other sales activity. Its monthly fixed costs total $100,000. Required: 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 costs increase by $72,000 annually, what are the monthly breakeven revenues