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A motel has 70 rooms as follows: 40% singles at $75 per night 30% doubles at $90 per night 30% triples at $100 per night.

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A motel has 70 rooms as follows: 40% singles at $75 per night 30% doubles at $90 per night 30% triples at $100 per night. The motel has annual fixed costs of $260,000and variable cost averages $25 per room occupied. a. How much is the average room rate? Oa. $87 Ob. $86.50 Oc. $80 Od.$95 b. How much is the Breakeven occupancy ratio? Oa. 43.54% Ob. 39.14% Oc. 38% Od.16.41% c. At what occupancy ratio will they make $310,000 operating income? Oa. 35.98% Ob. 39.14% Oc. 58.71% Od.28.55%

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