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As part of their application for a loan to buy Lakeside Farm, a property they hope to develop into a 12-room bed-and-breakfast operation, the prospective

As part of their application for a loan to buy Lakeside Farm, a property they hope to develop into a 12-room bed-and-breakfast operation, the prospective owners have projected: For a typical month of thirty days, the fixed cost (loan payment, taxes, insurance, maintenance) is $6000. For a typical night, the charge per occupied room per night is planned at $75, while its variable cost is $20. The break even number of rooms is close to ____ and the percentage occupancy would be about ____

. A. 5, 42% B. 10, 83% C. 4, 33% D. 8, 67% E. 6, 50%

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