D B E F G . 1 1 The 100-room limited-service MCU Inn has an ADR of $80 and variable costs per room sold of $15. 2 Its Monthly Fixed costs total $100,000. 3 1 How many rooms must be sold to breakeven? 5 2 What day of the month does it break even if it averages a paid occupancy percentage of 50%? 6 3 If variable costs are reduced by $3 and fixed costs increase by $72,000 annually, what are the monthly breakeven revenues? 7 4 8 100,000 80 15 (formula) (number) 9 ANSWER 10 1 Fixed costs = 11 ADR = 12 Variable costs per room = 13 Rooms sold to breakeven = 14 Round up to be an integer = 15 16 2 Occupancy percentage = 17 Number of rooms 18 Rooms sold per day = 19 Breakeven day of the month = 20 Round up to be an integer = 21 22 3 Annual fixed costs increase = 23 Monthly fixed costs increase = 24 New monthly fixed costs = 25 New variable costs = 26 Rooms sold to breakeven = 27 Round up to be an integer - 28 Monthly breakeven revenue = 60% 100 (formula) (formula) (number) 72,000 (formula) (formula) (formula) (formula) (number) (formula)