Brian Propp operates a bed & breakfast hotel in Banff, Alberta, Canada. His forecasts for next year follow:
Annual rental costs	$44,000
Maintenance staff monthly salaries	$11,000
Cleaning staff monthly salaries	$15,000
Security cost per room rental	$7
Cost of food per room rental	$8
Average room rental revenue	$130
Monthly average no. of room rentals	350
REQUIRED:
Calculate the number of room rentals per year that Brian needs to break even.
Calculate the annual sales revenue required to break even.
Calculate the annual number of room rentals required to earn a profit before tax of $50,000.