Question
B. The Hotel El Politcnico has # 500 rooms. They normally have a cost per room of $ 50.00, plus a fixed cost of $
B. The Hotel El Politcnico has # 500 rooms. They normally have a cost per room of $ 50.00, plus a fixed cost of $ 4,000.00 per day. Each room rents for $ 165.00 per day during the summer season.
a. If the Hotel operates at 70% capacity for one day, what is the net profit (gain / loss)?
b. What is the equilibrium point (B. E. P.) in units if it operates at full capacity?
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Crafting and Executing Strategy The Quest for Competitive Advantage
Authors: Arthur Thompson, Margaret Peteraf, John Gamble, A. J. Strickland III
19th edition
78029503, 978-0078029509
