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A hotel has a rack rate of 250 and a yield of 85%. There are 200 rooms in inventory and last year they ran 70%

A hotel has a rack rate of 250 and a yield of 85%. There are 200 rooms in inventory and last year they ran 70% occupancy. Variable costs are 35 dollars per room night sold. Fixed costs for one year are 5 million dollars.

Prepare an income statement for one year in the contribution margin format. Determine the contribution margin per unit (room night) Calculate breakeven sales revenue If the company expected to make 2 million in operating income, calculate the breakeven number of room nights for one year.

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