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Debra Botosan operates a bed and breakfast hotel in a resort area near Lake Michigan. Depreciation on the hotel is $84,600 per year. Debra employs
Debra Botosan operates a bed and breakfast hotel in a resort area near Lake Michigan. Depreciation on the hotel is $84,600 per year. Debra employs a maintenance person at an annual salary of $66,000 and a cleaning person at an annual salary of $49,000. Real estate taxes are $35,000 per year. The rooms rent at an average price of $85.00 per person per night including breakfast. Other costs are laundry and cleaning service at a cost of $34.60 per person per night and the cost of food, which is $30.00 per person per night. (a) Determine the quantity of rentals and the sales revenue Debra needs to break even using the contribution margin technique. Break-even quantity of rentals Break-even sales $ Save for Later Attempts: 0 of 1 used Submit Answer (b) The parts of this question must be completed in order. This part will be available when you complete the part above. (c) The parts of this question must be completed in order. This part will be available when you complete the part above
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