A 60-room motel usually rents out its rooms in the following proportions:

50% singles @ $24.00

25% doubles @ $30.00

25% triples @ $36.00

Variable costs have been calculated to average $8.50 per room occupied. Annual fixed costs are $225,800. Base your calculations on the assumption that 20 rooms are sold.

a) Calculate the motel's breakeven occupancy percent_________.

b) Calculate the occupancy percentage that will give an operating income (before tax) of $20,000 per year____________.

c) Calculate the occupancy percentage that will give an operating income (before tax) of $20,000 per year if the average room rate decreased by 15 percent____________.

		a) BE Occ%: 51% b) Occ% with $20,000 OI: 65% c) Occ% with $20,000 OI and 15% decrease AVG RM Rate: 77%
		a) BE Occ%: 52% b) Occ% with $20,000 OI: 56% c) Occ% with $20,000 OI and 15% decrease AVG RM Rate: 70%
		a) BE Occ%: 52% b) Occ% with $20,000 OI: 56% c) Occ% with $20,000 OI and 15% decrease AVG RM Rate: 71%