Accounting

25. Hotel Seven Star has annual fixed costs applicable to rooms of 18,00,000 for a rent a 360 rooms hotel with average daily room rates 480 and average variable costs 72 for each room rented. The Hotel operates 365 days per year. It is subject to an income tax rate of 30%. You are required to: Calculate the number of rooms the Hotel must rent to earn a net income after taxes of 312,00,000 (II) Compute the break-even point in terms of rooms rented