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Barbara Botosan operates a bed and breakfast hotel in a resort area near Lake Michigan. Depreciation on the hotel is $64552 per year. Barbara employs
Barbara Botosan operates a bed and breakfast hotel in a resort area near Lake Michigan. Depreciation on the hotel is $64552 per year. Barbara employs a maintenance person at an annual salary of $45,000 and a cleaning person at an annual salary of $28,000. Real estate taxes are $14000 peryear. The rooms rent at an average price of $64.00 per person per night including breakfast. Other costs are laundry and cleaning service at a cost of $14.04 per person per night and the cost of food, which is $9.00 per person per night. (a) V Your answer is correct. Determine the quantity of rentals and the sales revenue Barbara needs to break even using the contribution margin technique. Break-even quantity of rentals 3700 Break-even sales $ 236800 HOEI
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