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Can you please show the work and where you got the answers from? Jennifer Botosan operates a bed and breakfast hotel in a resort area
Can you please show the work and where you got the answers from?
Jennifer Botosan operates a bed and breakfast hotel in a resort area near Lake Michigan. Depreciation on the hotel is $66,654 per year. Jennifer employs a maintenance person at an annual salary of $47,000 and a cleaning person at an annual salary of $30,000. Real estate taxes are $16,000 peryear. The rooms rent at an average price of $66.00 per person per night including breakfast. Other costs are laundry and cieaning service at a cost of $16.06 per person per night and the cost of food, which is $11.00 per person per night. Determine the quantity of rentals and the sales revenue Jennifer needs to break even using the contribution margin technique. eTextbook and Media If the current level of rentals is 5,600 , by what percentage can rentals decrease before Jennifer has to worry about having a net loss? (Round percentoges to 0 decimal places. es. 52\%) Margin of safety Jennifer is considering upgrading the breakfast service to attract more business and increase prices. This will cost an additional $9 for food costs per person per night. She feels she can increase the room rate to $86.00 per person per night. Determine the quantity of rentals and the sales revenue Jennifer needs to break even if the changes are made. (Round answers to 0 decimal places, es. 5.275) Break-even number of rentals Break-evensales Step by Step Solution
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