Answered step by step
Verified Expert Solution
Question
1 Approved Answer
answer all parts to the problem please and show work. thanks! John Rhoades, owner of Rhoades Inn, has requested your assistance in analyzing his fiftyroom
answer all parts to the problem please and show work. thanks!
John Rhoades, owner of Rhoades Inn, has requested your assistance in analyzing his fiftyroom rooms-only property. He provides you information as follows: 1. The average rooms sales price is $30. 2. Monthly fixed costs equal $20,000. 3. His variable costs per room sold equal $10. Required: 1. Determine the Rhoades Inn's breakeven point in revenue. 2. If revenues equal $450,000, what is the Rhoades Inn's margin of safety in revenues and rooms sold? 3. If John desires his property to generate a pretax profit of $100,000, how many rooms must be sold? 4. What is the occupancy percentage for the Rhoades Inn when pretax profit earned is $100,000 Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started