Question
A 90-room motel has an average room rate of $65.60. Its fixed costs are $300,000 a year, and its variable costs total $476,000 at an
A 90-room motel has an average room rate of $65.60. Its fixed costs are $300,000 a year, and its variable costs total $476,000 at an average occupancy of 70 percent.
a. What is the motels breakeven occupancy percentage?
b. What level of sales revenue is required to provide an operating income (before taxes) of $100,000 a year?
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Managerial Accounting
Authors: Kurt Heisinger, Joe Ben Hoyle
1st Edition
1453345299, 9781453345290
